"The most important reason to incorporate or form a company is to protect yourself from personal liability. When you form a company, you are forming a legal entity that is separate from yourself as an individual. The Corporation or LLC has powers vested upon it that allows it to make all the decisions that an individual may make. For example, the Corporation or LLC may enter into leases, may borrow money, it may buy goods and services on credit, and in all cases you are not personally liable for the transaction. If a problem arises, the only recourse would be against the Corporation or LLC, similarly, if anyone were to ever file a lawsuit for an action arising out of the business of the Corporation or LLC, that party would not be able to go after your personal assets such as your home, bank accounts or car or boat etc., as long as you comply with the formalities of a Corporation. Therefore you have the peace of mind knowing that your personal assets are safe.
Your Corporation or LLC records should include: The Articles of Incorporation or Articles of Organization, Corporate Bylaws or Company Regulations, Organizational Minutes, Annual reports, stock/membership register for keeping track of stock/membership transactions or a membership register for keeping track of membership transactions, Minutes of all shareholders and directors' meetings or all member and manager meetings, including the annuals mandatory meetings.