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In this tutorial, 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, applicable to various business structures like sole proprietorships, LLCs, and corporations. It’s crucial to close your EIN to avoid future tax filings, payments, or issues stemming from an inactive business status. Additionally, closing the EIN can help prevent potential fraud, as keeping accounts open may expose you to vulnerabilities.
