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Lee Phillips, an attorney, discusses the importance of the articles of incorporation for corporations and articles of organization for LLCs. These documents are filed with the state to legally create your business entity, granting limited liability and a structured tax framework. Phillips emphasizes the necessity of understanding these articles, which can often be overly complex when presented by lawyers. He notes that states only require a minimal amount of information to set up a corporation or LLC, urging individuals to focus on comprehending these essential documents rather than getting bogged down by extensive legal jargon.