Thank you for your help.

I originally completed Part V to apportion income to CO. However, after completing Part V, the CO K-1 worksheet shows errors in the section to check the Composite Filing box or the Nonresident Agreement Form DR 0107 box.   

The Nonresident status is automatically checked in PS based on the S Corp's FL address. 

I guess I will have the client sign a Nonresident Agreement Form DR 0107 and submit it with the CO S Corp tax return.

Have you had this situation before and filed the DR 0107? Or did you handle it a different way?