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Eligible Entities and "Check the Box" Treasury Regulations- California state law classification of business entities is not always the same as the tax classification of an entity. Under the "check the box" treasury regulations, a business entity is classified either as a "per se" C-corporation or as an entity eligible allowing it to choose its tax classification. These enttities are referred to as eligible entities (see Treas. Regs. §§ 301.7701-2 and 301.7701-3). This blog post will continue our discussion of tax considerations that come up when forming a business entity. An eligible entity (meaning, a business entity not treated as a per se C-corporation) generally chooses its classification for tax purposes (see Treas. Reg. § 301.7701-3), and therefore can take advantage of entity level taxation by being recognized as a flow-through entity for tax purposes. Partnerships and LL Cs organized under California state law are by default eligible entities under the same check the box treasury regulations.