Are any of the S-Corps' shareholders nonresidents of Maryland? Payment of the Maryland income tax is not required with the filing of Form 510
unless the pass-through entity is subject to the nonresident member tax.
According to the
Comptroller of Maryland's website :
Nonresident members.
If a pass-through entity has a nonresident member and any nonresident taxable income, then the pass-through entity is subject to the Maryland income tax. The pass-through entity is taxed on the nonresident taxable income, which is the sum of the nonresident members' distributive or pro-rata shares of the pass-through entity's income allocable to Maryland.
A "nonresident member" includes a nonresident individual member (defined as a person or fiduciary) and a nonresident entity member. A nonresident entity member is a corporation or pass-through entity that is not qualified or registered with the Maryland Department of Assessments and Taxation to do business in Maryland or not formed under Maryland law.
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