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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. An EIN serves as a business's tax identification number, similar to a social security number for individuals, and can be assigned to any business type, including sole proprietorships, LLCs, or corporations. When closing a business, it’s important to close the EIN to avoid future filings, payments, or taxes that may arise after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud by reducing the risk of leaving accounts open that could be exploited.
