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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, comparable to a social security number for individuals, serves as a tax identification number for various business structures, including sole proprietorships, LLCs, and corporations. It is essential to close your EIN to avoid future tax filings, payments, or obligations once the business has ceased operations. This step also helps prevent potential fraud, as remaining open accounts could be susceptible to misuse.
