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In this tutorial, attorney Elizabeth Potts Weinstein explains the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN functions similarly to a Social Security number for a business and serves as its tax identification number, whether for a sole proprietorship, LLC, or corporation. As part of closing the business, it is essential to ensure that the EIN is properly closed to avoid any future tax filings, payments, or obligations. This step also helps prevent potential fraud that could arise from leaving accounts open, which may be exploited by individuals seeking to commit fraud.
