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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 is a tax identification number similar to a Social Security number for individuals, applicable to sole proprietorships, LLCs, or corporations. It's important to close the EIN to avoid future filings, payments, or taxes that may arise even if the business is no longer operational. Additionally, canceling the EIN can help prevent fraud, as open accounts may pose a risk if misused by others.
