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In this video tutorial, attorney Elizabeth Potts Weinstein explains how to close or cancel an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a tax identification number for businesses, similar to a social security number for individuals, and is relevant for sole proprietorships, LLCs, and corporations. Closing your EIN is important to avoid future filings, payments, or taxes due after the business ceases operations, and it also helps prevent potential fraud that could occur if accounts remain open. This step is a critical part of properly winding down a business.
