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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. She explains that an EIN serves as a tax identification number, akin to a social security number for individuals, and is necessary for various business structures such as sole proprietorships, LLCs, or corporations. Weinstein emphasizes the importance of closing your EIN to avoid future tax filings, payments, or potential fraud associated with leaving accounts open. By officially canceling the EIN, business owners can ensure they manage their responsibilities effectively as they wind down operations.
