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In this video, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your 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 as a sole proprietorship, LLC, or corporation. It is important to close your EIN to avoid future filings, payments, or taxes on a non-existent business, and to minimize the risk of fraud. Keeping accounts open can potentially expose you to fraudulent activities, making it essential to address the EIN closure during the business shutdown.
