What is a NAICS Code?
When completing work with government contracting, loan applications, or licensing, you may be required to provide your company’s NAICS code. However, many clients are unaware of what that number may be as it is not something that is provided with a new company formation. Many times, clients will not know where to start to find this information and will have issues with applications requiring these details.
What is the NAICS Code?
The NAICS Code is a numeric code that classifies the business by industry. It is for federal statistical agencies to collect and analyze data regarding economic activity across North America and is managed by the U.S. Census Bureau. The term NAICS stands for North American Industry Classification Systems. It is often used by tax departments, applications for tax credits, business licensing in different states/cities, and for federal contracting.
How to Get a NAICS Code
If the NAICS Code is not issued, where does it come from? It is not issued through the formation of the company but rather is self-assigned. Companies will go to the NAICS website and type in the keywords describing the company’s business activity and a list of NAICS codes will appear specific to the keywords inputted. It would then be up to the discretion of the company to determine which number best suits their business and the industry in which their business will be conducted. It is possible to have more than one NAICS Code if more than one suits the business activities.
NAICS Code Lookup
It is important to check the NAICS codes periodically as they can change over time. The U.S. Census Bureau will review the codes every few years and can make slight changes. The most recent review and revision was completed on January 1st, 2025, and the next scheduled review is currently poised to take place in 2027. It is beneficial to check the NAICS codes before using them on any contract or application just to ensure that no changes have been made since the last time the code was used.
What about SIC codes?
Standard Industrial Classification (SIC) codes are also used for classifying businesses by industries, however, it is an older system that has not been updated since 1987. It is not nearly as common anymore as it has been almost entirely replaced by NAICS codes. There are still some states or older institutions that may require this number which clients can go to their website just like with the NAICS codes input key words to find the appropriate industry. The SIC codes were managed by the U.S. Office of Management and Budget but are no longer actively managed by any specific government agency and have fewer industries to choose from. Therefore, most clients will not use the SIC codes unless specifically required by an institution.
If you need help with determining the correct NAICS code for your company, it is best to contact the Census Bureau. They can be reached by phone at (888) 756-2427 or by email at NAICS@census.gov.
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