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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 is a tax identification number similar to a social security number for individuals, applicable to various business structures like sole proprietorships, LLCs, and corporations. It’s important to close your EIN to avoid future tax filings, payments, or liabilities after the business is no longer operational. Additionally, closing the EIN helps prevent fraud by eliminating the risk of someone using the open accounts for malicious activities.
