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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. An EIN, akin to a social security number for businesses, serves as a tax identification number for various business entities, including sole proprietorships, LLCs, and corporations. Closing your EIN is important to prevent any future tax filings, payments, or liabilities after your business ceases operations. Additionally, it helps mitigate the risk of potential fraud that could occur if accounts remain open.
