There are many reasons why you need to use Articles of Incorporation. For starters, they’re a requirement for any company wanting to become a corporation. The articles inform the state government of essential aspects of the business. The key benefits of incorporation are:
Liability protection for the owners
Protection of personal assets from business creditors and legal action
Tax management options for income and deductions
Separate legal entity status, which can make the business more attractive to investors
Issue of shares and selling them to raise business capital
More credibility and confidence in your business in the marketplace
Creates a clearly defined structure for the company