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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 tax identification number for various business structures, similar to a Social Security number for individuals. It's essential to close the EIN to avoid future filings, payments, or taxes due after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could expose them to misuse. The tutorial covers the importance of ensuring all business-related matters, including the EIN, are properly resolved during the shutdown process.
