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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. An EIN serves as a tax identification number for a business, similar to a social security number for individuals, and is applicable to sole proprietorships, LLCs, or corporations. It is important to close your EIN to avoid future tax filings, payments, or obligations associated with the business, which no longer exists. Additionally, closing your EIN helps prevent potential fraud that could arise from leaving accounts open.
