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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, which serves as a tax identification number similar to a social security number for individuals, can be obtained by various business entities, including sole proprietorships, LLCs, and corporations. It is crucial to close the EIN to avoid future tax filings, payments, or liabilities associated with the business that no longer exists. Additionally, closing the EIN can help prevent fraud by ensuring that no open accounts remain that could be exploited.
