Final answer:
The form of business structure that does not avoid double taxation is the corporation.
Step-by-step explanation:
The form of business structure that does not avoid double taxation is the corporation.
Unlike sole proprietorship or partnership, a corporation is a separate legal entity that is taxed on its own income. In addition, when dividends are distributed to shareholders, those dividends are also subject to taxation as income.
For example, let's say there is a corporation that earns $100,000 in profit. The corporation will pay taxes on that $100,000. Then, if the corporation distributes $20,000 in dividends to its shareholders, those dividends will also be taxed as income for the shareholders.