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Lee Phillips, an attorney, explains the importance of articles of incorporation (for corporations) and articles of organization (for LLCs). These documents are essential for creating a corporation or LLC, as they are required by the state where the business is formed. This paperwork grants permission to operate under specific rules, providing benefits like limited liability and tax structures. Phillips emphasizes the necessity of understanding these documents, noting that while lawyers may provide lengthy articles, states only require a minimal amount of information to establish the entities. Proper comprehension of these articles is vital for business compliance.