Correct. You need to complete Schedule B, but you are not a business. You do not pay taxes to MD as a partnership. You don't complete Form 510 below line 4. Yes, your distributions of income to members in different states is irrelevant from the standpoint of having to withhold MD taxes.

 

Ira Smilovitz

 

So we are a Unistate PTE Pass Through Entity. Next question:
If we conduct business in one state, but have members in
different states (Maryland, DC, Virginia), do we have to do
anything special at tax time with these members?

We have a visitor from VA coming to visit the club.

you wrote: You don't conduct "business" as business is
defined in the regulations.

Does that mean the distribution to members in different
states is irrelevant since we don't conduct "business" as
business is defined in the regulations.