Final answer:
Corporations that are closely held may file a consolidated tax return, which encompasses both the parent and subsidiary companies. Additionally, the sole owner of a corporation is subject to various federal taxes, including corporate, payroll, and other taxes. Moreover, corporations can be subject to double taxation on profits and dividends.
Step-by-step explanation:
Corporations that are members of a parent subsidiary affiliated group with 80% or more of ownership may be able to file a consolidated tax return for a taxable year. This allows the group to combine their tax liabilities and potentially simplify their tax filing process. Additionally, individual owners of a corporation, even if they are the only employee, will have to pay various forms of federal tax including corporate taxes, which are imposed on the company's net profits.
Other taxes that may apply to the corporation include property tax, payroll tax, excise tax, customs tax, and value-added tax. Moreover, corporations face the issue of "double taxation", where the business itself is taxed on its income, and then dividends paid to shareholders are also taxed.