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This tutorial focuses on the importance of corporate formalities for both corporations (S or C Corp) and limited liability companies (LLCs). Simply filing Articles of Incorporation or Organization is insufficient for gaining the legal protections these entities offer. Proper documentation is crucial, including bylaws for corporations or operating agreements for LLCs. In cases with multiple owners, a member agreement for LLCs or a shareholder agreement for corporations should be established to clarify rights. Additionally, all actions and transactions related to the business must be conducted in the entity's name by authorized individuals to maintain legal protections.