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In this video, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an 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. It's essential to close the EIN to avoid future filings, payments, or taxes associated with the business. This step also helps prevent potential fraud that could arise from leaving accounts open. Properly closing the EIN is a critical part of the process when dissolving a business entity, whether it be a sole proprietorship, LLC, or corporation.
