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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 acts as a tax identification number, akin to a social security number for individuals, applicable to various business structures like sole proprietorships, LLCs, or corporations. It's essential to formally close your EIN to avoid future tax filings, payments, or liabilities when the business no longer exists. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain open.
