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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a tax identification number similar to a social security number for individuals. It's applicable to various business structures, such as sole proprietorships, LLCs, or corporations. Closing your EIN is essential to avoid future tax filings, payments, or liabilities, even after the business ceases to exist. Additionally, it helps prevent potential fraud that could arise from leaving accounts open. This step is crucial for ensuring a clean closure of your business operations.
