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In this tutorial, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling 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, applicable to sole proprietorships, LLCs, or corporations. It is important to properly close the EIN to avoid future tax filings, payments, or other obligations after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud by reducing the chances of someone misusing open accounts.
