There are several differences between the financial statements of a company and those of a partnership, not least of which is the disclosure of taxation on the balance sheet as a liability. For a company, the disclosure is a single amount as it is the company that is liable and not the owners. For a partnership, the amount of taxation is split and reported separately in accordance with each partner's liability.

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In a partnership, taxes are not reported on the partnership's financial statements as a liability because the partnership itself does not pay income taxes. Instead, profits and losses are passed through to the partners, who then report and pay taxes on their individual tax returns.

There Are Several Differences Between the Financial Statements of a Company