Question

which corporation uses a double layer of taxation? c corporation limited liability company s corporation sole proprietorship

Explanation:

C corporations are subject to double - layer taxation. First, the corporation pays taxes on its profits at the corporate level. Then, when dividends are distributed to shareholders, the shareholders pay taxes on those dividends at the individual level. Limited Liability Companies (LLCs) are pass - through entities (taxed like partnerships or sole proprietorships in most cases), S corporations are also pass - through entities (taxed at the shareholder level), and sole proprietorships are taxed at the owner's individual tax rate (no separate corporate tax).

Answer:

C. C corporation