I have an S Corp that is going to start doing business in another state (DE). He lives in MD.  The two states do not have reciprocity. 

Obviously his P&L will need to be tracked on a state by state level.  Is the income allocated to DE at the S Corp level?  I have spent too much time in Proseries trying to figure out how to allocate some of the S Corp income to DE vs MD. I would imagine this must be done at the S Corp level and not at the individual level, correct?

Thanks.