The North American Industry Classification System (NAICS) code is an identifier used to categorize business establishments based on their primary economic activity. This classification system is a standard tool for federal statistical agencies in the United States, Canada, and Mexico to collect, analyze, and publish data on the business economy. Finding a company’s correct NAICS code is important for business research, market analysis, statistical tracking, and determining eligibility for government contracts or small business programs. This guide will outline the various ways to successfully identify the NAICS code for a specific company or organization.
Understanding NAICS Codes
The NAICS system was developed collaboratively by the three North American nations and replaced the older Standard Industrial Classification (SIC) system in 1997. NAICS codes utilize a hierarchical, six-digit structure that allows for precise categorization of industries. The first two digits designate the broadest economic sector, such as Manufacturing or Retail Trade, of which there are 20 in the system.
Subsequent digits progressively narrow the definition of the business activity. The third digit specifies the subsector, the fourth digit defines the industry group, the fifth digit corresponds to the NAICS industry, and the final sixth digit pinpoints the national industry. This detailed structure helps government agencies, like the U.S. Census Bureau, which serves as the primary administrator, create economic profiles and statistics. Businesses also use these codes for internal market segmentation and to ensure compliance when applying for federal opportunities.
Finding a Company’s Code Using Official Search Tools
The most reliable way to find an industry code is by directly utilizing the official search tools provided by the U.S. Census Bureau. The Census Bureau’s NAICS website provides a search function that allows users to query the classification manual using keywords. This tool is effective when searching for the code of a company whose primary business activity is clear, such as a specific type of retailer or manufacturer.
Users can input descriptive terms related to the company’s function, and the tool returns a list of potential six-digit codes and their descriptions. Once a potential code is found, it is important to review the official definition to ensure it accurately reflects the company’s main business function. Alternatively, the official site allows users to browse the hierarchical structure, starting with the two-digit sector and drilling down until the most accurate six-digit code is identified.
Locating Codes Through Public Business Filings
A direct method for finding a company’s NAICS code is by reviewing documents the company has already filed with government agencies. Publicly traded companies, for instance, often include their primary industry code within their annual reports, such as the Form 10-K, which is filed with the U.S. Securities and Exchange Commission (SEC). These financial reports are publicly available through the SEC’s EDGAR database or the company’s investor relations website.
For smaller, privately held businesses, the code may be listed on state-level filings. Many state governments, particularly the Secretary of State or a state’s department of revenue, require a business to report its NAICS code during initial registration or for specific licensing and tax purposes. Searching the public business registry on a relevant state’s website can sometimes yield the company’s self-reported code. The codes may also appear on documents related to specific permits or licenses, particularly those required for environmental or specialized industry operations.
Using Third-Party Business Databases and Resources
Commercial business data providers maintain databases that often include assigned NAICS codes for millions of companies. These third-party resources can offer a quick lookup for a company’s code, especially for large entities. Companies like Dun & Bradstreet (D&B) track business information and link their proprietary D-U-N-S numbers to both NAICS and the older SIC codes.
Specialized business intelligence platforms and industry directories also assign and track these codes as part of their company profiles. Codes assigned by commercial services may be based on their own analysis of the company’s activities, such as website content or financial reports. If the code is needed for a regulatory filing or a government application, it should be cross-referenced with the company’s self-reported code or the official government definition to ensure accuracy.
Self-Classifying Your Own Business
Business owners determining their own NAICS code must focus on the production-oriented concept of the system, which groups establishments based on the similarity of the processes used to produce goods or services. The primary NAICS code must reflect the activity that generates the largest proportion of the company’s revenue. If the revenue streams are roughly equal, the code should align with the activity that employs the largest number of people.
The process begins by identifying the most general two-digit sector that encompasses the company’s main activity. From there, the business owner uses the official NAICS manual to navigate through the subsector, industry group, and specific industry definitions. The selection must align with the core economic function of the establishment. This self-assignment process requires consideration to ensure the business is correctly classified for statistical reporting and program eligibility.
Addressing Complex Classification Challenges
Classification can become challenging when a business engages in multiple distinct activities or has complex operational structures. The system requires companies to ignore “ancillary activities,” which are functions that support the main revenue-generating work, such as accounting, human resources, or internal logistics. The classification must be based solely on the core activity of the establishment.
Vertically integrated companies, which control multiple steps of a production process, are typically classified based on the final product or the stage of production that adds the most value. For instance, a company that manufactures a product and sells it directly to consumers must determine whether the manufacturing or the retail component represents the greater economic value. While NAICS has replaced the older SIC system, conversion tools exist to cross-reference the two systems for historical data analysis.