In general there are five types of business tax levied on a federal level according to the Internal Revenue Service (IRS): Employment Taxes, Estimated Taxes, Excise Tax, Income Tax, and Self-Employment Tax. Not all businesses will be required to pay all five types of tax and this does not include any taxes levied by the state. Most often, these taxes are calculated based on income or expected income. 

The tax code allows for a number of different exemptions and credits depending on the nature of the business. For example, self employed individuals with a home office can apply for a home office deduction. Other deductions are more general such as the deduction for having a net loss of income for the year. An accountant or tax law attorney should be consulted to explore the complete spectrum of credits and deductions available in a given situation.

Federally, some taxes will need to be withheld every pay period such as self-employment tax or employment taxes. Other taxes like income taxes only need to be filed annually. It is a good idea to consult a tax attorney to determine what taxes should be paid, when they would be paid, and how often.

Failing to pay taxes correctly could result in the need to repay back taxes or pay fines. In cases where the failure to correctly pay taxes is ruled to be intentional, some members of the company may be found guilty of tax evasion and suffer the criminal penalties associated with that crime.

Different business structures have different taxation structures. An LLC and a sole proprietorship are taxed differently and depending on the nature and conduct of a business one type of incorporation may be superior to another.