Canada and Mexico, along with the U.S., adopted the NAICS to better analyze and facilitate trade through the North American Free Trade Agreement (NAFTA). SIC codes primarily focused on manufacturing and were kept up-to-date with service-based and high-tech businesses. The North American Industry Classification System (NAICS) code started in 1997 and replaced the Standard Industrial Classification (SIC) system. What is the difference between a NAICS code and SIC code? The full results give a short industry overview and the types of businesses included in that particular code. Clicking our “Restaurants, full service” example, we are able to get more details about that industry.In this example, we looked at “Restaurants, full service.” If you aren’t sure, click on the listings to look at the overview to see which one is closest. Instead of “Pizza Restaurant,” try “Restaurant.” When you see a NAICS title that is closest to your business, click on the result. If that happens, try something more generic. If you enter something too specific, no results will come in.For example, “Restaurant,” “Auto Repair,” “Grooming,” Etc., then click “Submit.” In this example, we searched for a restaurant. Use the field for “2017 NAICS Search” Enter what your business does.These certifications allow smaller businesses to compete for government contracts that are only reserved for small businesses. Obtaining certifications – Various state and government agencies such as the Small Business Administration and Department of Veteran’s Affairs requires businesses to be under a certain revenue to qualify for certifications.Comparing financial performance against businesses in the same industry.Identifying whether a business can compete for government contracts.Helping businesses find potential customers that operate in specific industries.While it’s not uncommon for a business to have multiple codes, you will choose the NAICS closest to the primary business activity.īesides tracking economic activity, some other uses of NAICS codes include: You may be wondering, “What is my NAICS code?” To properly determine your primary NAICS code(s), you must work down the classification scheme to identify the best fit for your business. This is important because while you may be licensed for 451211 (Book Stores) you are. The full six-digit NAICS code will appear when the license is viewed online. You can identify subcategories by their three-digit codes and industries by their four-digit codes. Basic NAICS Code Information: You will be required to choose a full six-digit NAICS code and your printed business license will only show the two-digit line of business (LOB) code. For example, all Construction related businesses are under the NAICS two-digit code of 23.Īfter the sectors, there are 96 subcategories and 317 industry groups. Within NAICS, 20 primary two-digit NAICS code classifications are commonly referred to as sectors. The shorter 2-digit codes are the broadly defined industry and become more specific as more numbers are added. The NAICS code is a number between 2-6 digits. Census Bureau to have standardized data to provide statistical data from economic activity. NAICS is a way for U.S., Mexico, and Canada governmental agencies such as the U.S. The North American Industry Classification System (NAICS) is a classification system to group businesses into similar industries for the primary purpose of tracking economic activity.
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