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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 various business structures, including sole proprietorships, LLCs, and corporations. It's essential to close the EIN to avoid future filings, payments, or taxes that may accrue even after the business is no longer operational. Closing the EIN also helps prevent potential fraud, as leaving accounts open could lead to unauthorized activity. The video provides guidance on these steps to ensure a smooth business closure.
