There are laws in place that make it the responsibility of businesses to pay certain taxes. Failure to do so can result in a variety of penalties. A business owner is liable to pay any tax burden on the following parts of their business, if applicable. Property tax if said business owns any real property. Excise tax which covers certain types of consumption a business may need to operate (such as fuel) as well as the tax due on any communication, transportation and other like activities that are business-related. Business income tax which is a tax against any income a company receives. Sales tax on products or services a business sell. Self-employment tax is paid by the sole proprietor and or partners for social security and medicare. Employee payroll tax is a tax that a business owner must file on behalf of their employees for social security, unemployment, medicare, and workers compensation. Gross receipt tax, which takes the place of state tax in some jurisdictions, and franchise tax which is paid to the state in which the business is based out of. This tax is determined based on the monetary value of the company.