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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 a business. She explains that an EIN functions as a tax identification number, similar to a social security number for individuals, and is essential for various business structures like sole proprietorships, LLCs, or corporations. As part of the closure process, it's important to officially close the EIN to avoid future filings, payments, or taxes, even after the business has ceased operations. Additionally, closing the EIN can help prevent potential fraud that could occur if the accounts remain open.
