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In this tutorial, attorney Elizabeth Potts Weinstein discusses the importance 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 entities like sole proprietorships, LLCs, or corporations. Closing your EIN is crucial to avoid future filings, payments, or taxes and to prevent potential fraud. By ensuring that all accounts associated with the EIN are closed, you minimize the risk of someone exploiting an open account for fraudulent purposes.
