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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 similar to a social security number for individuals. Whether acquired by a sole proprietorship, LLC, or corporation, it is essential to close the EIN to prevent ongoing filings, payments, or taxes that may be due after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow someone to misuse the information.
