NAICS Codes: What They Are, How to Find Yours

If you have started or are running a business in the United States or Canada, you may have heard the term NAICS Code. But what is it and why should we care?

North American Industry Classification System (NAICS): A standardized system used by government agencies, lenders, and businesses for classifying industries according to the economic activities the industries engage in. NAICS codes are used for business registration, tax purposes, license requirements, funding eligibility, and market research.

In this guide, we'll explain what NAICS codes are, why they’re important, and how to find the right one for your business.

What is a NAICS Code?

NAICS (pronounced “Nakes”) codes are six-digit identifiers specific to a company’s industry. The — developed by the U.S., Canada and Mexico — is used to streamline the industry’s data collection and analysis.

For example:

• 722513 – Limited-Service Restaurants (Fast food, takeout, coffee shops)
• 541511 – Custom Computer Programming Services(Software development, IT consulting)
• 812112 – Beauty Salons(Hair salons, nail salons, barber shops)

Each NAICS code represents a specific industry, making it easier for government agencies, banks, and analysts to group similar businesses together.

Why is Your NAICS Code Important?

Your NAICS code affects multiple aspects of your business, including:

1. Business Registration & Licensing
   Some states and local governments require a NAICS code when registering your business or applying for permits and licenses.
2. Business Taxes & IRS Filings
   The IRS uses NAICS codes to classify businesses for tax purposes. Choosing the wrong code could lead to higher tax rates or missed tax deductions.
3. Government Contracts & Grants
   Many government agencies use NAICS codes to determine eligibility for contracts, grants, and funding programs (especially for small businesses, minority-owned businesses, and veteran-owned businesses).
4. Business Loans & Financing
   Banks and lenders use NAICS codes to assess loan applications and risk factors. Some industries are considered high-risk, which could impact loan approvals or interest rates.
5. Market Research & Competitor Analysis
   NAICS codes allow businesses to analyze industry trends, market size, and competition. If you're looking to expand, industry reports and databases use NAICS codes to provide valuable insights.

Choosing the right NAICS code ensures your business is classified correctly, which can affect everything from taxes to financing opportunities.

How to Find Your NAICS Code

Finding your NAICS code is easy if you follow these simple steps:

Option 1: Use the NAICS Search Tool

• Go to the official NAICS website: https://www.naics.com/search/
• Enter a keyword that describes your business (e.g., "consulting," "e-commerce," "manufacturing").
• Browse the results and select the most relevant six-digit code.

Option 2: Check the Census Bureau NAICS Lookup

• Visit the U.S. Census Bureau NAICS search page: https://www.census.gov/naics/
• Enter keywords or browse industry categories to find your business type.

Option 3: Use the SBA NAICS Guide for Small Businesses

The Small Business Administration (SBA) provides a NAICS code guide that helps small businesses determine their eligibility for government contracts and grants.

Option 4: Check Your Tax Return or Business Documents

If your business has been operating for a while, your NAICS code may already be listed on:

• Your tax return (Schedule C, Form 1120, etc.)
• Your business license or state registration paperwork
• Your DUNS or SAM registration (for government contracts)

Option 5: Contact CompanyVista for Help

If you're unsure which NAICS code is right for you, our business experts at CompanyVista can help you determine the correct classification for free.

How to Choose the Right NAICS Code for Your Business

Choosing the right NAICS code is important because incorrect classifications can affect your taxes, funding, and compliance. Follow these tips to select the best code:

1. Match Your Primary Business Activity

• Pick the code that best describes what your business primarily does.
• If your business operates in multiple industries, choose the one that represents your main source of revenue.

2. Be Specific

• Avoid choosing a general or vague category—specific codes are more accurate for tax and funding purposes.

3. Check Industry Trends

• Research how similar businesses in your industry are classified.
• If your competitors have a specific NAICS code, it’s likely the best fit for you too.

4. Consider Future Growth

• If you plan to expand into new services or products, choose a NAICS code that allows for flexibility.

Can You Have Multiple NAICS Codes?

Yes! Many businesses operate in multiple industries, so they can have:

• A Primary NAICS Code –The main business activity (most revenue).
• Secondary NAICS Codes –Additional services or business divisions.

For example:

• A digital marketing agency that also develops software may have:
• Primary NAICS Code: 541810 – Advertising Agencies
• Secondary NAICS Code: 541511 – Custom Computer Programming Services

Pro Tip: If you apply for government contracts, certain NAICS codes may be more favorable for bidding!

Common NAICS Codes for Popular Industries

Here are some common NAICS codes across different industries:

Business & Professional Services

• 541611 – Management Consulting
• 541810 – Advertising & Marketing Agencies
• 541513 – IT Consulting Services

Retail & E-Commerce

• 454110 – Online Retail (E-commerce)
• 448140 – Clothing & Apparel Stores
• 452319 – General Merchandise Stores

Finance & Real Estate

• 522110 – Commercial Banking
• 531312 – Property Management

Construction & Trade Services

• 236220 – Commercial Building Construction
• 238210 – Electrical Contractors

Manufacturing & Industrial

• 332710 – Machine Shops & Metalworking
• 339910 – Medical Equipment Manufacturing

Why This Matters: Many businesses face heavy fines or dissolution due to non-compliance. We help you stay ahead.

Get the Right NAICS Code for Your Business

Your NAICS code is more than just a number—it affects how your business is taxed, funded, and classified.

At CompanyVista, we help entrepreneurs and business owners find the correct NAICS code and ensure their business is set up for success.

Need help choosing your NAICS code? Contact CompanyVista today for expert guidance!