What's a Corporation?

"To differentiate it from a partnership, a corporation should be defined as a legal and contractual mechanism for creating and operating a business for profit, using capital from investors that will be managed on their behalf by directors and officers. To lawyers, however, the classic definition is U.S. Chief Justice John Marshall’s 1819 remark that 'a corporation is an artificial being, invisible, intangible, and existing only in contemplation of law.' But Marshall’s definition is useless because it is a metaphor; it makes a corporation a judicial hallucination."

~ Robert Hessen, from his article 'Corporations' at the Concise Encyclopedia of Economics [hat tip David R. Henderson]