Which of these is subject to double taxation, where owners pay taxes on individual income derived from the business and the business itself pays on its net income?

The correct choice is a corporation, which is subject to double taxation. In a corporate structure, the business is treated as a separate legal entity from its owners (shareholders). This means that the corporation itself must pay taxes on its net income at the corporate tax rate. Once dividends are distributed to shareholders from the corporation's after-tax profits, the shareholders then pay personal income taxes on those dividends. This scenario creates a situation where the same income is taxed at two different levels: once at the corporate level and again at the individual level when received by shareholders.

In contrast, other business structures like an LLC, sole proprietorship, and partnership do not experience this double taxation. Instead, they tend to be pass-through entities where the business income is reported on the owners' individual tax returns, and thus only taxed at the individual income tax level. This distinction makes corporations unique in terms of taxation compared to these other structures.