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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, comparable to a social security number for individuals, serves as the tax identification number for various business structures such as sole proprietorships, LLCs, and corporations. It is important to close the EIN to avoid any future filings, payments, or taxes due after the business ceases to exist. Additionally, closing the EIN helps prevent potential fraud by reducing the risk of someone exploiting an open account.
