In England private corporations could formerly be created either by prescription, royal grant, or legislative action. In the United States, they can only be created by legislative action.3

Such legislative action can take the form either of a special action incorporating a certain company or a general corporate act under which any set of persons may secure a charter by compliance with statutory provisions. The former method, was originally the method used in the creation of every corporation but at the present time such a practice is prohibited by the Constitution of most of the States, and practically all corporations, except sometimes those of a quasi-public character, are created under general laws.