The Maryland Tax Court held that six nonresident Limited Liability Companies (LLCs) wholly-owned by another out-of-state limited liability company owed Maryland income tax despite the fact that the LLCs, as disregarded entities, had no federal income tax liability. Maryland law imposes an income tax “on each pass-through entity that has . . . any member who is a nonresident of the State or is a nonresident entity” and “any nonresident taxable income for the taxable year” under Md. Code Ann., Tax-Gen, Sec. 10-102.1(b). The Court reasoned that although Maryland income tax is calculated using federal taxable income as the starting point, the taxability of individuals and corporations in Maryland does not turn on whether a taxpayer actually completed a federal return. Accordingly, while the LLCs may not be obligated to complete a Form 1120 for the federal government, they “are clearly required to do so in order to complete the Maryland return.” This decision is pending review in circuit court. CNI Technical Services, LLC v. Comptroller of Maryland, Nos. 17-IN-00-0743; 17-IN-00-0748 (Md. Tax Ct. Jan. 17, 2019).