Computing the Apportionment Factor

Pass-through entities that conduct business in more than one state must allocate income if one or more of the partners or shareholders are non-residents of Maryland. Partnerships may use separate accounting or the apportionment method of allocation. S corporations must use the apportionment method unless the activity in Maryland is non-unitary. If the activity within Maryland is non-unitary, S corporations may use separate accounting.

For more information regarding the computation of apportionment factors, see the Instructions for Computation of the Apportionment Factor.