Finding the correct North American Industry Classification System (NAICS) code for your business involves identifying your primary business activity and then navigating the official NAICS system to pinpoint the most accurate classification. This process ensures your business is categorized correctly for various governmental and statistical purposes.
What is a NAICS Code?
The NAICS is a standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. It is widely used by government agencies, businesses, and researchers for administrative, contracting, and analytical purposes. Each code is a six-digit number, with the first two digits identifying the economic sector, the third digit the subsector, the fourth digit the industry group, the fifth digit the NAICS industry, and the sixth digit the national industry.
Steps to Find Your NAICS Code
Determining the appropriate NAICS code for your business primarily involves researching the classification system to find the code that best describes your main business activity.
| Step | Description | Practical Tip |
|---|---|---|
| 1. Understand Your Primary Business Activity | Identify the main service or product your business offers and how it generates revenue. If your business has multiple activities, focus on the one that generates the most revenue. | Be specific but also think broadly. For example, if you sell handmade jewelry, are you a "jewelry manufacturer" or a "retailer"? |
| 2. Access the Official NAICS Website | The U.S. Census Bureau maintains the official NAICS codes. This is the primary resource for searching and understanding the classification system. | Visit the U.S. Census Bureau NAICS website to begin your search. |
| 3. Search by Keyword | Use the search function on the NAICS website. Enter keywords that describe your business activity. For instance, if you operate a restaurant, try "restaurant," "food service," or "eatery." | Try different keywords and synonyms related to your industry. If your initial search doesn't yield results, broaden your terms. |
| 4. Browse by Sector | If keyword searching isn't effective or you want a broader understanding, you can browse through the major economic sectors (identified by the first two digits of the code). This can help you narrow down your search. | Start with sectors like "Retail Trade (44-45)," "Manufacturing (31-33)," or "Professional, Scientific, and Technical Services (54)." |
| 5. Drill Down to Specific Industry | Once you've found a relevant sector or subsector, navigate deeper through the industry groups and specific industries until you find the code that most accurately reflects your business. | Pay close attention to the detailed descriptions provided for each code. These descriptions clarify what is included and excluded. |
| 6. Select the Best Fit | Choose the NAICS code that most precisely matches your business's primary activity. It's crucial to select the code that genuinely represents the core of your operations. | If a perfect match isn't available, select the code for the activity that comes closest or represents the largest portion of your business. |
Practical Insights for Code Selection
- Focus on Primary Activity: Your NAICS code should reflect the primary activity that generates most of your business's revenue. If you have diverse operations, pick the main one.
- Review Detailed Descriptions: Each NAICS code comes with a detailed description that outlines what the industry includes and excludes. Reading these carefully can prevent misclassification.
- Consider Broader vs. Specific: Sometimes, a broader category might be more appropriate if your business activities span several specific sub-categories.
- Regular Review: Your business activities may evolve. It's a good practice to review your NAICS code periodically to ensure it still accurately reflects your operations, especially when applying for new contracts or licenses.
When Your Business Isn't Clearly Listed
If you're having trouble pinpointing the exact NAICS code for your business:
- Search Using Keywords: As mentioned, if your specific business isn't immediately listed, try searching on the keyword for the industry your business is in. Use variations of your business description.
- Contact for Assistance: For direct help and guidance, you can contact the Census Bureau by calling 1-888-756-2427 or emailing them at [email protected]. They can provide clarification and assistance in determining the correct code.
- Consult Industry Resources: The NAICS Association also provides resources and a help page that can guide you through the process of determining the correct NAICS code for your business. These resources often offer additional insights and examples.
Choosing the correct NAICS code is important for various applications, including government contracting, loan applications, and statistical reporting. Taking the time to accurately classify your business will benefit its operations and compliance.
