Final answer:
C corporations are popular due to limited liability, ability to raise capital, and tax advantages.
Step-by-step explanation:
C corporations are still popular despite the double tax on their income for several reasons. Firstly, C corporations offer limited liability to their owners, meaning that their personal assets are protected in case the business fails or faces legal issues.
This attracts entrepreneurs who want to take risks without risking their personal finances. Secondly, C corporations have the ability to raise more capital than other types of businesses, thanks to their ability to issue shares of stock. This allows them to grow and expand more quickly.
Lastly, C corporations have the advantage of being able to take advantage of tax deductions and credits, which can offset the impact of double taxation.