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In this video, 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 various business structures such as sole proprietorships, LLCs, and corporations, similar to a social security number for individuals. It’s important to formally close the EIN to avoid future tax filings, payments, or liabilities after the business has ceased operations. Additionally, closing the EIN can help prevent potential fraud that may occur if accounts remain open and accessible.
