A letterhead serves several purposes. Businesses and individuals use letterheads to establish or create an image as well as professionalism. Letterheads can be used as a means of communication.A company letterhead usually has the name of the company, address, phone number, email and website. All of this information serves as contact information for an organization.Letterheads can also be used as a method for branding an organization with a certain identity. If a logo is included, people will begin to recognize and associate the company with the logo. Letterheads help to distinguish your organization from all other organizations.