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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a tax identification number, akin to a social security number for businesses, applicable to sole proprietorships, LLCs, or corporations. As part of the business closure, it's essential to officially close the EIN to avoid any future tax filings, payments, or liabilities, even after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud by ensuring there are no open accounts that could be exploited.
