Which entity is characterized as an artificial being created by law?

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A corporation is recognized as a separate legal entity—an artificial person created by law. This means the law treats it as a distinct being that can own property, enter contracts, sue and be sued, and continue existing beyond the lives of its owners. It is formed by filing the proper charter or articles of incorporation and operates under corporate law with a board and officers. Shareholders have limited liability, typically risking only their investment.

Sole proprietorship, on the other hand, is owned by one person whose identity and the business are the same legal entity; there’s no separate legal person formed. A partnership is an association of individuals sharing profits and liability, not a standalone legal person in many contexts unless explicitly formed as a separate entity. A cooperative is a member-owned organization that can be incorporated or unincorporated; while an incorporated cooperative can be a separate legal entity, the phrase “artificial being created by law” most directly describes a corporation.