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In this video, 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, akin to a social security number for individuals. Whether the business is a sole proprietorship, LLC, or corporation, it is essential to close the EIN to prevent future filings, payments, or taxes due post-closure. Additionally, closing the EIN helps mitigate the risk of potential fraud, as leaving accounts open may allow unauthorized individuals to exploit them. Overall, handling your EIN correctly is a critical step in the business shutdown process.
