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In this tutorial, attorney Elizabeth Potts Weinstein explains the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN, similar to a social security number for individuals, serves as the tax identification number for businesses, applicable to sole proprietorships, LLCs, or corporations. It's essential to close your EIN to avoid future filings, payments, or taxes that may arise even after the business has ceased operations. Additionally, this action helps prevent potential fraud by ensuring that open accounts cannot be exploited.
