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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, similar to a social security number for individuals, serves as a tax identification number for businesses, whether a sole proprietorship, LLC, or corporation. Closing your EIN is essential to avoid future filings, payments, or taxes associated with a non-existent business. This step also helps prevent potential fraud, as leaving accounts open could allow individuals to exploit the situation. The video provides guidance on how to handle this important aspect of business closure.
