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NAICS basics
What a NAICS code is, where it came from and who uses it.
What is a NAICS code?
A NAICS code is a six digit number that describes what a business does. NAICS stands for the North American Industry Classification System, the standard that federal agencies in the United States, Canada and Mexico use to group businesses by their main economic activity. For example, 722511 is Full-Service Restaurants and 484121 is long distance truckload trucking. Government agencies use the code for statistics and contracting, the IRS uses a version of it on tax returns, and lenders and insurers use it to judge industry risk.
What is NAICS?
NAICS is the North American Industry Classification System, the official way the United States, Canada and Mexico classify businesses by industry. It was adopted in 1997 to replace the older Standard Industrial Classification (SIC) system and is revised every five years, most recently in 2022. The system sorts every kind of business activity into 20 sectors and 1,012 detailed six digit US industries. The Census Bureau, the Bureau of Labor Statistics, the SBA, the IRS and many private companies all rely on it.
What are NAICS codes?
NAICS codes are the numbers in the North American Industry Classification System that identify industries. They run from two digits for a broad sector, such as 62 for Health Care and Social Assistance, down to six digits for a specific industry, such as 621210 for Offices of Dentists. The 2022 edition has 20 sectors, 96 subsectors, 308 industry groups, 692 five digit industries and 1,012 six digit US industries. Businesses use the six digit code that best matches their main source of revenue.
What does NAICS stand for?
NAICS stands for North American Industry Classification System. It is pronounced like "nakes" and is the industry coding standard shared by the United States, Canada and Mexico. The name reflects its origin: the three countries built it together in the 1990s so their business statistics could be compared directly. In the United States the Office of Management and Budget oversees it, and the Census Bureau publishes the official code list and definitions.
What is a NAICS number?
A NAICS number is the same thing as a NAICS code: the two to six digit number that classifies a business by industry. When a form asks for your NAICS number, it wants the six digit code for your main activity, such as 541611 for management consulting or 236118 for residential remodelers. It is not an ID number unique to your company the way an EIN is. Thousands of businesses in the same industry share the same NAICS number.
What is the meaning of a NAICS number?
The meaning of a NAICS number is the industry it stands for in the North American Industry Classification System. Every number maps to an official title and definition published by the Census Bureau. For example, 531210 means Offices of Real Estate Agents and Brokers, and 811111 means General Automotive Repair. To find the meaning of any number, enter it in a NAICS lookup and read the title, the definition and the list of activities included and excluded from that code.
How many NAICS codes are there?
There are 1,012 six digit NAICS codes in the 2022 US edition, the version in use today. Counting every level, the system has 20 two digit sectors, 96 three digit subsectors, 308 four digit industry groups, 692 five digit industries and those 1,012 six digit national industries. The 2017 edition had 1,057 six digit codes, so the 2022 revision combined several industries, most notably in retail trade. The next revision is scheduled for 2027.
Is NAICS only for the United States?
No, NAICS is shared by the United States, Canada and Mexico. The three countries agree on the codes down to the five digit level in most sectors, which lets their statistics line up. The sixth digit is set by each country, so a six digit US code may not exist in the Canadian or Mexican versions. Other countries use different systems, most often the United Nations' ISIC or the European Union's NACE, which can be matched to NAICS with published concordance tables.
Who created NAICS and when?
NAICS was created by the US Office of Management and Budget together with Statistics Canada and Mexico's national statistics agency, INEGI, and was adopted in 1997. It replaced the Standard Industrial Classification system the United States had used since the 1930s. The goal was a single, modern system that handled service and technology industries better and let the three North American economies compare data. It has been revised every five years since: 2002, 2007, 2012, 2017 and 2022.
What is the NAICS Association and naics.com?
The NAICS Association is a private company that runs naics.com and sells business lists and data organized by NAICS and SIC codes. It is not a government agency and is not connected to the Census Bureau, which publishes the official NAICS codes. Its free search is a convenient way to browse codes, but the official titles and definitions come from census.gov. You never need to pay the NAICS Association or register with it to use a NAICS code.
What is the difference between NAICS and NAIC?
NAICS is an industry classification code, while NAIC is the National Association of Insurance Commissioners, the organization of state insurance regulators. A NAIC number is a five digit code that identifies a specific insurance company, often printed on insurance cards and certificates. A NAICS code describes a type of business, such as 524210 for Insurance Agencies and Brokerages. If a form asks for your insurer's NAIC number, look on your policy, not in the NAICS list.
Is a NAICS code the same as an EIN?
No, a NAICS code and an EIN are different numbers. An EIN, or Employer Identification Number, is a nine digit tax ID the IRS issues to one specific business. A NAICS code is a six digit industry code that thousands of businesses share. Your EIN identifies who you are, and your NAICS code describes what you do. Most forms, including tax returns, SAM.gov registrations and loan applications, ask for both.
Does every business have a NAICS code?
Yes, every business fits a NAICS code, but no agency hands one out. NAICS covers every economic activity, so any business can be matched to a six digit code based on its main source of revenue. You select the code yourself the first time a form asks for it, usually on your first tax return, a SAM.gov registration or a loan application. If you have never chosen one, you can find yours in a couple of minutes with a NAICS lookup.
Is a small company required to have a NAICS code?
A small company does not register for a NAICS code, but it will need to report one. The IRS asks for a business activity code based on NAICS on Schedule C and on partnership and corporate returns. Federal contractors must list NAICS codes in SAM.gov, and most lenders, insurers and payment processors ask for one too. Choosing your code once and using it consistently across these forms keeps your business profile clean.
Finding and looking up a code
How to find the right NAICS code for your business or look up another company's code.
How to find your NAICS code?
To find your NAICS code, start with the activity that brings in most of your revenue, then match it to the six digit industry that describes it. Search a keyword such as "bakery" or "roofing" in a NAICS lookup, read the definitions of the closest codes and pick the one whose description fits your main work. If you already filed a business tax return, check the business activity code you used, since it is based on NAICS. The NAICS calculator on this site walks through the choice in a few questions.
How do I find my business NAICS code?
You find your business NAICS code by matching your primary activity to the official code list. First, write one sentence about what you sell or do and who pays you. Second, search the key words in a NAICS lookup. Third, read the definitions of the top results, including what each code excludes. Choose the six digit code that covers the work producing the largest share of your revenue. Then use that same code on your tax return, SAM.gov profile and loan applications.
How to look up a NAICS code?
To look up a NAICS code, enter a keyword or a code number in a NAICS search tool. The official search on census.gov returns matching codes with their titles and definitions, and the lookup on this site does the same while also showing SBA size standards and how lenders view the industry. Searching by number shows what a code means, and searching by keyword shows which codes cover an activity. Always open the full definition before choosing, because similar titles can cover different work.
How do I find a company's NAICS code?
You can find another company's NAICS code in public databases. For government contractors, search the company in SAM.gov or USASpending, which show the codes the company registered. Public companies list an SIC code in their SEC filings, which converts to NAICS with a crosswalk. Commercial databases such as Dun and Bradstreet also show a code, though it is often estimated. If none of these list it, read what the company sells and look up the code that matches its main activity.
How to find the NAICS code for an LLC?
You find the NAICS code for an LLC the same way as for any business: by its main activity, not its legal structure. NAICS has no code for "LLC." A consulting LLC uses a consulting code such as 541611, a trucking LLC uses a code such as 484121, and an LLC that only owns rental property uses a real estate lessor code such as 531110. Pick the six digit code that matches the work producing most of the LLC's revenue and use it on its tax filings.
Where is my NAICS code on my tax return?
Your NAICS based business code is on your tax return in a labeled box near the top. On Schedule C it is line B, "Principal business or profession code." On Form 1065 it is item C, "Business code number." On Form 1120-S it is item B, "Business activity code number." On Form 1120 it is on Schedule K, line 2a. The six digit code you entered there is the code the IRS has on file for your business.
How to find a NAICS code on SAM.gov?
To find a NAICS code on SAM.gov, search the company or contract opportunity and open its record. On an entity registration, the NAICS codes appear in the Assertions section, with the primary code marked and a small business status shown for each code. On a contract opportunity, the NAICS code appears in the opportunity details, usually beside the set aside type. Your own codes are visible when you sign in and open your entity's registration.
Can I look up a NAICS code by company name?
Yes, you can look up a NAICS code by company name in a few places. SAM.gov and USASpending show codes for any business registered to work with the federal government. Business data providers such as Dun and Bradstreet show codes for millions of companies in their profiles. The official Census Bureau tool does not search by company name, because Census never publishes the codes it assigns to individual businesses. For a private company not in these sources, match its main activity to the code list yourself.
Why do lookup sites show different NAICS codes for the same company?
Lookup sites show different codes for the same company because each one gets its code from a different source. Some use the code the company chose in SAM.gov, some use an SIC code converted to NAICS, and many data vendors estimate a code from the company's name or website. No single public registry holds an official code for each business. The code that counts for you is the one you report on your tax return, SAM.gov profile and loan applications, so keep those consistent.
Can a business have more than one NAICS code?
Yes, a business can have more than one NAICS code, but it has one primary code. The primary code reflects the activity that earns the most revenue, and it is the one you put on your tax return. In SAM.gov you can list as many codes as you are able to perform, and you mark one as primary. A business with separate divisions, such as a contractor that also sells supplies, often lists a code for each line of work.
Which NAICS code do I pick if my business does two things?
Pick the NAICS code for the activity that brings in the most revenue. If a landscaping company earns 70 percent from landscaping and 30 percent from snow plowing, its primary code is 561730 Landscaping Services. When revenue is close to even, look at where most employees and costs go. You can still list the second code as a secondary code in SAM.gov and with lenders, but your tax return and most applications use the single primary code.
Getting and assigning a code
How a business gets its NAICS code and who, if anyone, assigns it.
How to get a NAICS code?
You get a NAICS code by choosing it yourself. There is no application, fee or registration. Look up the six digit code that matches the activity producing most of your revenue, then enter it wherever a form asks for it: your tax return, SAM.gov, a loan application or an insurance quote. The moment you report it, that is your business's NAICS code. The NAICS calculator on this site helps you choose in a few questions.
How do I get a NAICS code for my business?
You get a NAICS code for your business by selecting the code that fits your main activity and using it consistently. Describe what you sell and who pays you, search those words in a NAICS lookup, read the definitions and choose the best six digit match. Write the code down with your EIN and formation documents so you use the same one on your tax return, SAM.gov registration, bank and lender applications. No agency issues or approves it.
Do I have to register or apply for a NAICS code?
No, you do not register or apply for a NAICS code. NAICS codes are self assigned: you pick the code that describes your business and report it on the forms that ask. No government office keeps a registry of which code each business uses, and no one charges a fee for a code. Websites that offer to "register" or "certify" your NAICS code are selling something you do not need.
Who assigns NAICS codes?
No single agency assigns NAICS codes to businesses; businesses choose their own. The Office of Management and Budget sets the code system and the Census Bureau publishes it. Statistical agencies such as Census and the Bureau of Labor Statistics assign codes to businesses in their own surveys, but those assignments are confidential and not official for other uses. For federal contracts, the contracting officer assigns one code to each solicitation. For your own filings, you decide.
Can I choose my own NAICS code?
Yes, you choose your own NAICS code. The rule is that it must accurately describe the activity that generates most of your revenue. You cannot pick a code just because it has a larger SBA size standard or a better reputation with lenders, since lenders, the SBA and contracting officers compare the code against what your business actually does. When two codes seem to fit, read both definitions and choose the one whose included activities match your work most closely.
How do I get a NAICS code for a new business?
A new business gets a NAICS code by choosing one based on the activity it plans to earn most of its revenue from. You do not need a revenue history. Pick the six digit code that fits your business plan and use it when you open a bank account, apply for financing and file your first tax return. If the business ends up earning most of its money from something else, update the code on your next return and other profiles.
Does the IRS assign a NAICS code?
No, the IRS does not assign a NAICS code. You choose your business activity code from the list in the instructions for Schedule C, Form 1065, Form 1120 or Form 1120-S and enter it on the return. The IRS list is based on NAICS, though a few entries are combined or broader than the full six digit list. Getting an EIN does not give you a code either; the code appears only once you file a return.
Does the state assign a NAICS code?
No, states do not assign NAICS codes to businesses in general. Some state forms ask you to report one, such as sales tax registrations, unemployment insurance accounts and certain licensing applications, and you choose the code you enter. State workforce agencies may assign a code to your unemployment insurance account for labor statistics, and you can ask them to correct it if it does not match your business.
Meaning of the digits
How the six digits of a NAICS code are built, from sector down to national industry.
What do the digits in a NAICS code mean?
Each digit in a NAICS code adds detail. The first two digits are the sector, the third is the subsector, the fourth is the industry group, the fifth is the NAICS industry and the sixth is the US national industry. Take 238220: 23 is Construction, 238 is Specialty Trade Contractors, 2382 is Building Equipment Contractors, 23822 and 238220 are Plumbing, Heating, and Air-Conditioning Contractors. A six digit code ending in zero usually means the five digit industry was not split further.
What is a 2 digit NAICS code?
A 2 digit NAICS code is a sector, the broadest level of the system. There are 20 sectors, such as 23 Construction, 52 Finance and Insurance and 72 Accommodation and Food Services. Three sectors use a range because they span several two digit numbers: 31-33 Manufacturing, 44-45 Retail Trade and 48-49 Transportation and Warehousing. A two digit code is too broad for tax returns or SAM.gov, which ask for the full six digit code.
What is a 6 digit NAICS code?
A 6 digit NAICS code is the most detailed level of the system and the one businesses use on forms. It is called a national industry because the sixth digit is set by each country, so the US version can differ from Canada's and Mexico's. There are 1,012 six digit codes in the 2022 US edition. Examples include 541512 Computer Systems Design Services and 812112 Beauty Salons. Tax returns, SAM.gov and SBA size standards all work at this level.
What is a NAICS sector?
A NAICS sector is the top level grouping in the system, identified by the first two digits of a code. It groups businesses by their broad type of activity, such as producing goods, moving them or providing a service. There are 20 sectors, from 11 Agriculture, Forestry, Fishing and Hunting to 92 Public Administration. Every six digit code belongs to exactly one sector, which is why lenders often summarize industry risk by sector.
What are the 20 NAICS sectors?
The 20 NAICS sectors are: 11 Agriculture, Forestry, Fishing and Hunting; 21 Mining, Quarrying, and Oil and Gas Extraction; 22 Utilities; 23 Construction; 31-33 Manufacturing; 42 Wholesale Trade; 44-45 Retail Trade; 48-49 Transportation and Warehousing; 51 Information; 52 Finance and Insurance; 53 Real Estate and Rental and Leasing; 54 Professional, Scientific, and Technical Services; 55 Management of Companies and Enterprises; 56 Administrative and Support and Waste Management and Remediation Services; 61 Educational Services; 62 Health Care and Social Assistance; 71 Arts, Entertainment, and Recreation; 72 Accommodation and Food Services; 81 Other Services (except Public Administration); and 92 Public Administration.
What is a NAICS subsector and industry group?
A NAICS subsector is the three digit level and an industry group is the four digit level. Subsectors split a sector into major lines of business; for example, sector 72 splits into 721 Accommodation and 722 Food Services and Drinking Places. Industry groups split a subsector further; 722 splits into 7223 Special Food Services, 7224 Drinking Places (Alcoholic Beverages) and 7225 Restaurants and Other Eating Places. The 2022 edition has 96 subsectors and 308 industry groups.
Why do some NAICS sectors have ranges like 31-33?
Some sectors use ranges like 31-33 because they contain more subsectors than one two digit number can hold. Manufacturing is 31-33, Retail Trade is 44-45 and Transportation and Warehousing is 48-49. Each number in the range starts real codes: food and textile manufacturing begin with 31, wood, paper and chemicals with 32, and metals, machinery and electronics with 33. All three numbers mean the same sector.
What does "All Other" mean in a NAICS code title?
"All Other" in a NAICS title means the code is a catch all for activities in that industry group that do not have their own code. For example, 561990 All Other Support Services covers support businesses not listed anywhere else in subsector 561, and 339999 All Other Miscellaneous Manufacturing covers products without a specific manufacturing code. Use an "All Other" code only after checking that no specific code describes your business.
What is the difference between a 5 digit and 6 digit NAICS code?
A 5 digit NAICS code is the industry level shared by the United States, Canada and Mexico, and a 6 digit code is the US national industry within it. Sometimes the five digit industry is split, as 72251 Restaurants and Other Eating Places splits into 722511, 722513, 722514 and 722515. Sometimes it is not split, and the six digit code simply adds a zero, as with 561730 Landscaping Services. Forms in the United States ask for the six digit code.
NAICS versus SIC and other codes
How NAICS compares with SIC codes, IRS activity codes and the product codes used in procurement.
What is a SIC or NAICS code?
SIC and NAICS codes are both industry classification codes that describe what a business does. SIC, the Standard Industrial Classification, is the older four digit system first published in 1937 and last revised in 1987. NAICS, the North American Industry Classification System, is the six digit system that replaced it in 1997 for federal statistics. Forms that ask for "SIC or NAICS" will accept either, but NAICS is current and more detailed, so use it when you have the choice.
Are SIC codes and NAICS codes the same?
No, SIC codes and NAICS codes are different systems with different numbers. SIC codes have four digits and about 1,000 industries organized around manufacturing. NAICS codes have six digits, 1,012 US industries in the 2022 edition, and far more detail for services and technology. Many SIC codes map to several NAICS codes and the reverse, so you cannot convert one to the other by adding digits. Use a crosswalk table to match them.
Where can I find a NAICS to SIC crosswalk?
The official NAICS to SIC crosswalk comes from the Census Bureau, which publishes concordance tables linking the 1987 SIC codes to the first 1997 NAICS codes and each later NAICS edition to the one before it. To go from an SIC code to a 2022 NAICS code, match the SIC code to 1997 NAICS, then follow the concordances forward. The NAICS vs SIC page on this site explains the match for common industries and shows the codes side by side.
Do I need a SIC code or a NAICS code?
Most businesses need a NAICS code, not an SIC code. The IRS, SBA, SAM.gov, Census Bureau and most lenders use NAICS. SIC codes still appear in a few places: the SEC assigns SIC codes to public companies in EDGAR, OSHA uses them in some records, and some older data vendors and insurers still ask for them. If a form asks for an SIC code, find your NAICS code first and convert it with a crosswalk.
What is the IRS principal business code and is it the same as NAICS?
The IRS principal business activity code is the six digit code you enter on a business tax return, and it is based on NAICS but not identical to it. For most industries the IRS code matches the NAICS code exactly. In some areas the IRS combines several NAICS codes into one broader entry, often ending in zeros, to keep its list short. Use the code from the IRS list in your return's instructions on tax forms, and your full NAICS code everywhere else.
What is a PSC or UNSPSC code and how is it different from NAICS?
PSC and UNSPSC codes describe what is being bought, while a NAICS code describes the industry of the business selling it. A PSC, or Product and Service Code, is the four character code federal contracts use to track spending by product type, and every federal contract carries both a PSC and a NAICS code. A UNSPSC code is an eight digit United Nations product code used in corporate and state purchasing portals. The NAICS code is the one that sets the small business size standard.
What is ISIC and how does it relate to NAICS?
ISIC is the International Standard Industrial Classification, the United Nations' system for classifying industries worldwide. Many countries base their national systems on it, including the European Union's NACE. NAICS is the North American alternative used by the United States, Canada and Mexico. The two are structured differently, but official concordance tables link each NAICS code to the matching ISIC class, which helps businesses that report data in more than one country.
SBA size standards and government contracting
How your NAICS code sets the SBA size standard that decides whether you count as small.
What is the size standard for a NAICS code?
The size standard for a NAICS code is the maximum size a business can be and still count as small for SBA programs and federal contracts. The SBA sets one for each six digit code in 13 CFR 121.201, measured either in average annual receipts or in average number of employees. For example, 541611 management consulting is $24.5 million in receipts and most manufacturing codes are set between 500 and 1,500 employees. Look up any code on this site to see its standard.
How does the SBA determine my NAICS code?
The SBA determines your NAICS code by your primary industry, the activity that brings in the largest share of revenue. When it reviews your size for a loan or program, it also looks at where your employees, costs and assets go, under 13 CFR 121.107. For federal contracts, the SBA uses the code the contracting officer assigned to the solicitation, not your own primary code. If your stated code does not match your actual work, the SBA uses the code that does.
How to determine company size using a NAICS code?
To determine company size with a NAICS code, compare your business to that code's SBA size standard. If the standard is in receipts, average your total annual receipts over your last five completed fiscal years. If it is in employees, average the number of people on payroll for each pay period over the last 24 months. Include every affiliate, meaning any business that controls you, that you control, or that shares common control with you. If your figure is at or below the standard, you are small.
Does my small business qualify as small under my NAICS code?
Your business qualifies as small if its size, including affiliates, is at or below the SBA size standard for its NAICS code. Most businesses do: a full-service restaurant qualifies up to $11.5 million in average annual receipts, a janitorial company up to $22 million, and an HVAC contractor up to $19 million. For SBA 7(a) and 504 loans there is also an alternative test: tangible net worth of $20 million or less and average net income after taxes of $6.5 million or less over the last two years.
What NAICS code qualifies for 8(a)?
No specific NAICS code qualifies a business for the SBA 8(a) program. Any industry can take part. To be eligible, the business must be small under the size standard for its primary NAICS code, be at least 51 percent owned and controlled by socially and economically disadvantaged individuals, and show good character and potential for success. Once admitted, the firm can pursue 8(a) contracts in any NAICS code where it is also small.
Do NAICS codes apply to 8(a) contracts?
Yes, every 8(a) contract has a NAICS code, and the firm must be small under that code's size standard to win it. The contracting officer assigns the code when the requirement is offered to the 8(a) program. The firm's primary NAICS code is also used to judge its size when it applies to the program. Listing every code you can perform in SAM.gov and your 8(a) business plan lets you compete for more contracts.
What is the NAICS 541512 size standard?
The SBA size standard for NAICS 541512, Computer Systems Design Services, is $34 million in average annual receipts. A business in this code counts as small if its total receipts, including affiliates, average $34 million or less over its last five completed fiscal years. Code 541512 covers firms that plan and design computer systems that integrate hardware, software and communications, and it is one of the most common codes in federal IT contracting.
What is the NAICS 541611 size standard?
The SBA size standard for NAICS 541611, Administrative Management and General Management Consulting Services, is $24.5 million in average annual receipts. A consulting firm counts as small if its receipts, including affiliates, average $24.5 million or less over its last five completed fiscal years. Code 541611 covers advice on strategy, organization, operations and financial planning, and it is the most widely used code for general business consultants.
What is the NAICS 236220 size standard?
The SBA size standard for NAICS 236220, Commercial and Institutional Building Construction, is $45 million in average annual receipts. A general contractor in this code counts as small if its receipts, including affiliates, average $45 million or less over its last five completed fiscal years. Code 236220 covers general contractors and construction managers who build offices, stores, schools, hospitals, warehouses and similar nonresidential buildings.
What is the NAICS 541330 size standard?
The SBA size standard for NAICS 541330, Engineering Services, is $25.5 million in average annual receipts. Three exceptions carry a higher standard of $47 million: Military and Aerospace Equipment and Military Weapons; contracts awarded under the National Energy Policy Act of 1992; and Marine Engineering and Naval Architecture. A federal solicitation states which standard applies, and the firm must be at or below it, counting affiliates, to bid as small.
Where do I find the SBA table of size standards?
The SBA table of size standards is published on sba.gov and in federal regulations at 13 CFR 121.201. It lists every six digit NAICS code with its size standard in millions of dollars of average annual receipts or in number of employees, plus footnotes and exceptions. The size standards page on this site shows the same figures organized by NAICS code, and the NAICS calculator shows the standard for whatever code you select.
How often do SBA size standards change?
SBA size standards change at least every five years. The SBA must review every standard on that schedule and also adjusts the dollar based standards for inflation, most recently in a rule effective December 19, 2022. It updates the table when a new NAICS edition is adopted, as it did for NAICS 2022. In August 2026 the SBA proposed a broad overhaul that would set standards mostly at the four and five digit level with no reductions to any existing standard.
What is a NAICS code on SAM.gov and why do contracts list one?
On SAM.gov, a NAICS code shows what kind of work a business does or a contract requires. In your registration you list every code you can perform and mark one as primary, and SAM.gov records whether you are small under each one. Each contract opportunity lists one NAICS code chosen by the contracting officer, and that code's size standard decides who can bid as a small business. An offeror who believes the code is wrong can appeal it to the SBA within 10 calendar days of the solicitation's release.
Changing and fixing a code
How to update a NAICS code that no longer fits and every place it needs to change.
How to change your NAICS code?
To change your NAICS code, start using the new code everywhere it is reported. On your next federal tax return, enter the new business activity code; no separate IRS form is needed. In SAM.gov, edit your registration's NAICS codes and primary code. Update your state sales tax and unemployment accounts through each agency's online portal, and ask Dun and Bradstreet to correct your profile. Finally, tell your bank, lenders and insurer so their records match.
Can I change my NAICS code?
Yes, you can change your NAICS code whenever your main business activity changes or you realize the original code was wrong. Because you choose the code yourself, there is no approval process and no fee. A business that started in consulting and now earns most of its revenue from software, for example, should move from a 5416 code to a software code such as 513210 or 541511. Change it on your next tax return and on every profile that lists it.
What if my NAICS code is wrong?
If your NAICS code is wrong, correct it on your next filing and update every other place it appears. A wrong code can put you under the wrong SBA size standard, flag you as a higher risk industry with lenders or misclassify you with insurers. Use a NAICS lookup to confirm the right code, enter it on your next tax return, edit your SAM.gov registration and update your state accounts, data vendor profiles and lender records.
Where do I update my NAICS code?
Update your NAICS code in five places. First, your federal tax return, on the business activity code line of your next filing. Second, SAM.gov, if you are registered for federal contracts or grants. Third, your state accounts, such as sales tax and unemployment insurance. Fourth, Dun and Bradstreet and other business credit bureaus, which lenders and suppliers check. Fifth, your bank, lenders, insurers and payment processor, who keep the code in their own files.
How do I change my NAICS code in SAM.gov?
To change your NAICS code in SAM.gov, sign in, open your entity registration and choose to update it. In the Assertions section, add or remove NAICS codes and select a new primary code. SAM.gov then recalculates your small business status for each code from your receipts and employee answers. Submit the update; it takes effect once SAM.gov finishes processing. Contracting officers and SBA staff will see the new codes on your profile.
How to change your naics codeSba size standards by naics code
Does changing my NAICS code affect my taxes?
No, changing your NAICS code does not change your tax rate or the deductions you can take. The IRS uses the code to classify returns for statistics and to compare your figures with similar businesses. Your tax is based on your income, entity type and expenses, not your industry code. What a change does affect is consistency, so make sure the new code matches the business described on the rest of your return.
Can I pick a NAICS code to avoid a lending restriction?
No, you should not pick a NAICS code to avoid a lending restriction. Lenders verify your industry from your tax returns, bank statements, website and licenses, so a code that does not match your real activity gets caught in underwriting. Misstating your industry on a loan application is a false statement that can lead to a declined loan or a default. The better route is to find lenders whose credit box already includes your industry, which a good broker does for you.
Taxes and registrations
Which code goes on which tax form and how the IRS uses it.
What NAICS code do I use on Schedule C?
On Schedule C, use the six digit principal business or professional activity code from the list in the Schedule C instructions, entered on line B. Find the category that matches your main activity and copy the code beside it. A freelance graphic designer uses 541430, a real estate agent 531210 and a beauty salon 812112. The list is based on NAICS, so your NAICS lookup will usually point you to the same number.
Is the Schedule C business code the same as a NAICS code?
The Schedule C business code is based on NAICS and is the same number for most businesses. The IRS uses a shorter list than the full NAICS system, so a few IRS codes cover several NAICS industries and end in zeros. If your exact NAICS code appears in the Schedule C instructions, use it. If it does not, use the IRS entry that covers your activity on the tax return and keep your exact NAICS code for SAM.gov, lenders and other forms.
Where does the business code go on Form 1120 and Form 1065?
On Form 1065, the partnership return, the business code goes in item C, "Business code number," near the top of page 1, with the activity and product described in items A and B. On Form 1120, the C corporation return, it goes on Schedule K, line 2a, "Business activity code no.," with the activity and product on lines 2b and 2c. On Form 1120-S, it goes in item B at the top of page 1. Each form's instructions include the code list.
Does my NAICS code affect how much tax I pay?
No, your NAICS code does not affect how much tax you pay. Tax depends on your income, expenses, credits and entity type. The IRS uses the code to group returns for statistics and to compare businesses with their peers, so a return with figures far from the norm for its industry is easier to spot. Choosing an accurate code keeps those comparisons fair and your records consistent.
What NAICS code should an LLC holding company use?
An LLC holding company that owns controlling interests in other companies uses 551112 Offices of Other Holding Companies. If it also manages and administers those companies, 551114 Corporate, Subsidiary, and Regional Managing Offices fits better. An LLC that only holds real estate is not a holding company under NAICS; it uses a lessor code such as 531110 for residential or 531120 for nonresidential buildings. An LLC holding investments it does not control uses a code in subsector 523.
What NAICS code do I use for a side business or gig work?
Use the code for the work you actually do in the side business. Rideshare drivers use 485310 Taxi and Ridesharing Services, food and package delivery drivers use 492210 Local Messengers and Local Delivery, freelance writers use 711510 Independent Artists, Writers, and Performers and online resellers use the retail code for the products they sell. If you run two unrelated side businesses, each gets its own Schedule C and its own code.
What NAICS code do rental property owners use?
Rental property owners use 531110 Lessors of Residential Buildings and Dwellings for houses and apartments, and 531120 Lessors of Nonresidential Buildings (except Miniwarehouses) for commercial space. If you report rentals on Schedule E, no NAICS code is needed; Schedule E asks for a property type code from 1 to 8 instead. An LLC or partnership filing Form 1065 for rental property enters the 531110 or 531120 code.
What NAICS code does a nonprofit use?
A nonprofit uses the NAICS code for the work it does, because NAICS classifies by activity, not tax status. A food bank uses 624210 Community Food Services, a private school uses 611110 Elementary and Secondary Schools, and a church uses 813110 Religious Organizations. Advocacy groups use 8133 codes, trade associations use 813910 Business Associations and foundations that give grants use 813211 Grantmaking Foundations. Grant applications and SAM.gov ask for this code.
Loans, lenders and insurance
How lenders, insurers and payment processors use your NAICS code.
Does my NAICS code affect my business loan?
Yes, your NAICS code affects your business loan because lenders use it to judge industry risk and eligibility. Each lender has a credit box listing the industries it funds, avoids or prices higher. The code decides whether your application reaches underwriting, which loan products you qualify for, and sometimes your rate and advance amount. For SBA loans it also sets the size standard you must meet. An accurate code sends your file to lenders that actually fund your industry.
Which NAICS codes are high risk for lenders?
Lenders most often treat these NAICS areas as high risk: restaurants and bars in 7225 and 7224, trucking in 484, construction trades in 238, travel agencies in 5615, auto dealers in 4411, cannabis and hemp businesses, adult entertainment, gambling in 7132, firearms sellers, cryptocurrency and lending businesses in 522. These industries have higher failure rates, uneven cash flow or legal exposure. High risk does not mean no funding; it means fewer lenders, tighter terms or more documentation.
Which NAICS codes are ineligible for SBA loans?
The SBA does not ban NAICS codes; it bans certain business activities under 13 CFR 120.110, which line up with codes. Ineligible businesses include lenders such as payday and consumer finance companies in 5222, passive real estate investors that only collect rent, life insurance carriers (524113), businesses earning more than a third of revenue from gambling (7132), pyramid sales, speculative ventures, lobbying and political groups (813940), private clubs that restrict membership, and any business illegal under federal law, including cannabis.
Naics codes and business loansSba size standards by naics code
What is a restricted industry in business lending?
A restricted industry is one a lender will fund only under extra conditions or not at all. Each lender keeps its own list, usually written as NAICS codes or SIC codes. Restrictions range from outright prohibitions, such as adult entertainment or cannabis, to limits like lower maximum amounts, shorter terms, higher rates or requirements for more collateral. Because every lender's list differs, a business restricted by one lender is often approved by another.
Can I get a loan if my NAICS code is restricted?
Yes, you can usually get a loan with a restricted NAICS code by applying to lenders that specialize in your industry. Restaurants, trucking companies, contractors and other high risk industries are funded every day by lenders who know them well. Strong revenue, time in business, good credit and collateral offset industry risk. Equipment financing, SBA loans for eligible industries, invoice factoring and revenue based financing are common options, and a broker can route your file to the right lenders.
Do lenders check my NAICS code?
Yes, lenders check your NAICS code and confirm it against your business documents. They compare the code you give with your tax returns, bank statements, website, licenses and credit bureau profiles. Many lenders screen applications automatically by NAICS code before a person reviews them, so a code that does not match your business can cause a decline or a delay. Using the same accurate code everywhere avoids those problems.
How does an AI loan brokerage use my NAICS code?
An AI loan brokerage uses your NAICS code to match your business to lenders that fund your industry. The code is checked against each lender's credit box, its list of allowed, restricted and prohibited industries, along with your revenue, time in business and credit. It also flags SBA eligibility and the size standard that applies. That match sends your application only to lenders likely to approve it, which saves time and avoids needless credit inquiries.
Does my NAICS code affect merchant processing?
Yes, your industry affects merchant processing, though card networks use their own Merchant Category Code, a four digit number, rather than NAICS. Processors review your NAICS code during underwriting to decide whether to approve your account, what reserve to hold and what rates to charge. Industries such as travel, nutraceuticals, subscriptions and online gaming are treated as high risk and often need a specialized processor. An accurate code speeds approval.
Common industries
The NAICS codes most businesses ask about, with how to choose between close matches.
What is the NAICS code for trucking?
The main NAICS codes for trucking are 484110 General Freight Trucking, Local; 484121 General Freight Trucking, Long-Distance, Truckload; and 484122 General Freight Trucking, Long-Distance, Less Than Truckload. Specialized haulers of goods like bulk liquids, cars or oversize loads use 484220 for local or 484230 for long distance, and household movers use 484210. Choose general or specialized by what you haul, and local or long distance by whether most trips stay within one metro area.
What is the NAICS code for an owner operator truck driver?
An owner operator truck driver uses the same NAICS codes as any trucking company. Most over the road owner operators hauling dry van or reefer freight use 484121 General Freight Trucking, Long-Distance, Truckload. Drivers who stay within one metro area use 484110, and those hauling specialized freight such as cars, tankers or flatbed heavy haul use 484230 for long distance or 484220 for local. Leasing onto a carrier does not change your code.
What is the NAICS code for consulting?
The most common NAICS code for consulting is 541611 Administrative Management and General Management Consulting Services. Specialized consultants use a more specific 5416 code: 541612 for human resources, 541613 for marketing, 541614 for logistics and supply chain, 541618 for other management consulting and 541690 for scientific and technical consulting such as environmental or energy advice. IT consultants use 541512 Computer Systems Design Services. Choose the code matching the advice clients pay you for most.
What is the NAICS code for a restaurant?
Restaurants use 722511 Full-Service Restaurants when guests order seated and pay after eating, and 722513 Limited-Service Restaurants when guests order and pay at a counter, including fast food, pizza delivery and takeout. Buffets and cafeterias use 722514, and coffee shops, juice bars and ice cream shops use 722515 Snack and Nonalcoholic Beverage Bars. The deciding factor is how service works, not the type of cuisine or whether you serve alcohol.
What is the NAICS code for construction?
Construction businesses use codes in sector 23. General contractors building homes use 236115 for new single family homes or 236118 Residential Remodelers, and commercial general contractors use 236220 Commercial and Institutional Building Construction. Specialty trades use 238 codes, such as 238210 Electrical Contractors, 238220 Plumbing, Heating, and Air-Conditioning Contractors and 238160 Roofing Contractors. Road and utility builders use 237 codes. Choose by the type of project and whether you manage the whole job or one trade.
What is the NAICS code for real estate?
The NAICS code for real estate depends on your role. Agents and brokers use 531210 Offices of Real Estate Agents and Brokers. Investors who own and rent out property use 531110 for residential or 531120 for commercial buildings. Property managers use 531311 Residential Property Managers or 531312 Nonresidential Property Managers. Appraisers and other real estate services use 531320 or 531390, and investors who build homes to sell use 236117 New Housing For-Sale Builders.
What is the NAICS code for ecommerce?
Ecommerce businesses use the retail code for the products they sell. NAICS 2022 removed 454110 Electronic Shopping and Mail-Order Houses, so online stores are now classified like physical stores. An online clothing shop uses 458110 Clothing and Clothing Accessories Retailers, a toy store uses 459120 Hobby, Toy, and Game Retailers, and a store selling a broad mix of products uses 455219 All Other General Merchandise Retailers. Sellers of goods to other businesses use wholesale codes in sector 42.
What is the NAICS code for a food truck?
A food truck uses NAICS 722330 Mobile Food Services. The code covers businesses that prepare and serve meals or snacks from motorized vehicles or carts, including food trucks, ice cream trucks and street vendors. If you also run a fixed restaurant and it earns most of your revenue, use 722511 or 722513 for the business instead. Caterers who cook for events rather than selling from a vehicle use 722320 Caterers.
What is the NAICS code for a software company?
A software company that develops and sells or licenses its own product, including SaaS, uses 513210 Software Publishers. A company that writes custom software for clients uses 541511 Custom Computer Programming Services. One that designs and integrates systems of hardware and software uses 541512 Computer Systems Design Services, and one whose business is hosting and cloud infrastructure uses 518210. Choose based on whether clients pay for your product, your programming time or your computing capacity.
What is the NAICS code for a nonprofit organization?
A nonprofit uses the NAICS code for its main activity, since NAICS has no single nonprofit code. Common choices are 813110 Religious Organizations, 813211 Grantmaking Foundations, 813219 Other Grantmaking and Giving Services, 813319 Other Social Advocacy Organizations, 813410 Civic and Social Organizations and 624190 Other Individual and Family Services. Nonprofits that run schools, clinics or museums use the education, health or arts code for that work.
What is the NAICS code for a cleaning service?
A cleaning service uses 561720 Janitorial Services, which covers both commercial cleaning and residential house cleaning and maid services. Carpet and upholstery cleaners use 561740, and window washers, pressure washers and duct cleaners use 561790 Other Services to Buildings and Dwellings. Biohazard and crime scene cleanup companies use 562910 Remediation Services. Choose the code matching the cleaning that earns most of your revenue.
What is the NAICS code for landscaping?
A landscaping business uses 561730 Landscaping Services. The code covers lawn care and mowing, planting and maintaining gardens, tree trimming, installing walkways and retaining walls as part of landscape work, and snow plowing when combined with landscaping. Landscape architects who design but do not install use 541320 Landscape Architectural Services, and lawn and garden retail stores use 444240 Nursery, Garden Center, and Farm Supply Retailers.
What is the NAICS code for a salon?
A hair or beauty salon uses 812112 Beauty Salons. Barber shops use 812111 Barber Shops and nail salons use 812113 Nail Salons. Day spas, waxing studios, tanning salons and other personal care businesses use 812199 Other Personal Care Services. If you rent booths to independent stylists and that rent is your main income, the salon still uses 812112, and each booth renter uses the code for the services they provide.
What is the NAICS code for a dentist?
A dental practice uses 621210 Offices of Dentists. The code covers general dentists and specialists such as orthodontists, oral surgeons, periodontists, endodontists and pediatric dentists, whether they practice alone or in a group. Dental laboratories that make crowns, dentures and bridges use 339116 Dental Laboratories, and dental supply sellers use wholesale code 423450. Lenders treat 621210 as one of the strongest industries for practice financing.
What is the NAICS code for an insurance agency?
An insurance agency uses 524210 Insurance Agencies and Brokerages. The code covers independent agents, captive agents and brokers who sell insurance policies for carriers and earn commissions. Businesses that handle claims adjusting, third party administration or other insurance services use 524291 Claims Adjusting, 524292 Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds, or 524298 All Other Insurance Related Activities. Insurance carriers that write policies use 5241 codes.
What is the NAICS code for a farmer?
A farmer uses a code in sector 11 based on the main crop or livestock. Crop farms use 111 codes, such as 111110 Soybean Farming, 111150 Corn Farming, 111219 Other Vegetable (except Potato) and Melon Farming, and 111998 All Other Miscellaneous Crop Farming. Livestock farms use 112 codes, such as 112111 Beef Cattle Ranching and Farming, 112120 Dairy Cattle and Milk Production and 112310 Chicken Egg Production. Choose the product that brings in most of your sales.
What is the NAICS code for manufacturing?
Manufacturing businesses use codes in sector 31-33, chosen by the product they make. Food makers use 311 codes such as 311811 Retail Bakeries, metal fabricators use 332 codes such as 332710 Machine Shops and 332312 Fabricated Structural Metal Manufacturing, and furniture makers use 337 codes. Products without a specific code use 339999 All Other Miscellaneous Manufacturing. Most manufacturing codes have SBA size standards measured in employees rather than revenue.
What is the NAICS code for a bar?
A bar uses 722410 Drinking Places (Alcoholic Beverages). The code covers bars, taverns, pubs, nightclubs and cocktail lounges whose main business is serving alcoholic drinks for on site consumption. If food sales are larger than drink sales and guests order seated, use 722511 Full-Service Restaurants instead. Breweries that brew on site and mainly sell their own beer use 312120 Breweries, and wineries use 312130.
What is the NAICS code for a daycare?
A daycare uses 624410 Child Care Services. The code covers child care centers, home based family child care, preschools focused on care rather than formal instruction, and before and after school programs. Preschools run mainly as educational programs within an elementary school use 611110. The SBA size standard for 624410 is $9.5 million in average annual receipts, so most daycares qualify as small businesses.
What is the NAICS code for HVAC?
An HVAC contractor uses 238220 Plumbing, Heating, and Air-Conditioning Contractors. The code covers installing, servicing and repairing heating, ventilation and air conditioning systems, as well as plumbing, boilers, ductwork and sprinkler systems. HVAC equipment wholesalers use 423730 Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers. The SBA size standard for 238220 is $19 million in average annual receipts.
What is the NAICS code for roofing?
A roofing company uses 238160 Roofing Contractors. The code covers installing, repairing and replacing roofs, along with gutters, downspouts, skylights and sheet metal roofing work. A contractor that mostly does siding uses 238170 Siding Contractors, and a general contractor that manages full home repairs including roofs uses 236118 Residential Remodelers. Choose 238160 when roofing work produces most of your revenue.
What is the NAICS code for accounting and bookkeeping?
Accounting firms led by CPAs use 541211 Offices of Certified Public Accountants. Bookkeepers and non CPA accountants use 541219 Other Accounting Services, tax preparers use 541213 Tax Preparation Services and payroll companies use 541214 Payroll Services. Choose 541211 only if the firm is a licensed CPA practice; otherwise pick the code for the main service clients pay for.
What is the NAICS code for a staffing agency?
A staffing agency that supplies temporary workers to clients uses 561320 Temporary Help Services. An agency that recruits for permanent placement and earns placement fees uses 561311 Employment Placement Agencies, and executive recruiters use 561312 Executive Search Services. A professional employer organization that co-employs a client's workforce uses 561330. Choose by whether the workers are on your payroll or the client's.
What is the NAICS code for a gym?
A gym uses 713940 Fitness and Recreational Sports Centers. The code covers health clubs, fitness centers, CrossFit boxes, yoga and Pilates studios, climbing gyms and recreational sports facilities. Businesses that mainly teach structured lessons, such as martial arts schools, use 611620 Sports and Recreation Instruction, and dance schools use 611610 Fine Arts Schools.