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In this video, 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 a tax identification number for a business, akin to a social security number for individuals. When a business is terminated, it's essential to close the EIN to avoid future filings, payments, or taxes due for a non-existent entity. Additionally, closing the EIN helps prevent potential fraud, as open accounts may be vulnerable to misuse. Thus, managing the EIN is a crucial step in the business dissolution process.
