Question

how form of business whose profits are taxed twice is

Answer 1

A C Corporation the corporation is a different and separate entity whose profits are taxed then what's left of those profits are distributed by the individual share holders who then will be taxed on their individual share of the profits.

Subsequently, where as in a S corporation, subchapter corporation, the corporation entity is to be believed that doesn't get taxed only the individual share holders do. Most of the small businesses are S corporations.

Hence the answer is that C Corporations are taxed twice where once on the Corporate earnings and then another as dividends to the shareholders.