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In this tutorial, 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 serves as a tax identification number, similar to a Social Security number for individuals, applicable to sole proprietorships, LLCs, and corporations. It's essential to close the EIN to avoid future filings, payments, or taxes that may arise after the business no longer exists. Additionally, closing the EIN helps prevent potential fraud by ensuring that all accounts are properly managed and inactive, reducing the risk of someone exploiting open accounts.
