Question

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

Explanation:

C corporations are subject to double - layer taxation. First, the corporation pays taxes on its profits at the corporate tax rate. Then, when dividends are distributed to shareholders, those shareholders pay taxes on the dividends at their individual tax rates. S corporations, sole proprietorships, and limited liability companies (LLCs) generally do not have this double - layer taxation. S corporations and LLCs are pass - through entities (profits and losses pass through to the owners' tax returns), and sole proprietorships are also taxed at the individual level of the owner.

Answer:

C. C corporation