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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. An EIN serves as a tax identification number, similar to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. Closing your EIN is essential to avoid future tax filings, payments, or liabilities after the business ceases operations. It also helps prevent potential fraud, as leaving accounts open could allow individuals to misuse the information. Ensuring proper closure of your EIN is a crucial step in the business winding-down process.
