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In this tutorial, 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 functions as a tax identification number for a business, akin to a social security number for individuals. It is essential for business entities like sole proprietorships, LLCs, or corporations. When closing a business, it’s important to formally address the EIN to avoid future filings, tax obligations, and potential fraud. Proper closure ensures that no responsibilities remain, thus protecting the business owner from lingering financial liabilities and identity theft risks.
