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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 a business, similar to a social security number for individuals, and can be obtained by sole proprietorships, LLCs, or corporations. It’s important to close the EIN to avoid future filings, payments, and taxes due after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud by ensuring that no open accounts can be exploited by unauthorized individuals.
