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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 your business. An EIN serves as the tax identification number for a business, similar to a social security number for individuals, and can be issued to sole proprietorships, LLCs, or corporations. It is important to close the EIN to avoid any future filings, payments, or taxes due, even after the business is no longer operational. Additionally, closing accounts helps prevent potential fraud, as open accounts could be exploited by unauthorized individuals.
