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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. She explains that an EIN serves as a tax identification number similar to a Social Security number for individuals. Whether obtained for a sole proprietorship, LLC, or corporation, closing the EIN is crucial to avoid ongoing filings, payments, or taxes after the business has ceased operations. Additionally, closing accounts helps prevent potential fraud by reducing the risk of someone exploiting inactive business information.
