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Lee Phillips, an attorney, discusses the importance of articles of incorporation or organization, which are necessary for forming a corporation or LLC. These documents are filed with the state, which grants permission for the business to operate under specific rules, providing limited liability and tax benefits. Phillips emphasizes the need to have the correct articles and to thoroughly understand them. He notes that while lawyers may provide extensive paperwork, states require only minimal information to establish a corporation or LLC. It's crucial for business owners to grasp the essentials of these documents for their operations.