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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 for various business structures, including sole proprietorships, LLCs, and corporations. It's essential to close your EIN to avoid future filings, payments, or taxes that may accrue even after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud risks associated with leaving accounts open.
