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In this tutorial, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. The EIN serves as a tax identification number, similar to a social security number for individuals, and is applicable to sole proprietorships, LLCs, and corporations. When dissolving a business, it’s important to close the EIN to avoid future filings, payments, or taxes, even after the business ceases to exist. Closing the EIN also helps prevent potential fraud by ensuring that inactive accounts cannot be exploited.
