The North American Industry Classification System (NAICS) is the standard framework used by federal statistical agencies to classify business establishments for collecting, analyzing, and publishing statistical data. For an independent contractor or small business, such as a notary public, selecting the correct six-digit code is an administrative requirement. This classification is utilized when a business files its annual tax return with the Internal Revenue Service (IRS) on Schedule C, and it is also often required for state business registrations. Understanding the proper NAICS code ensures a business is accurately represented in government reporting and can access relevant small business resources.
The Primary NAICS Code for Notary Publics
The definitive NAICS code for an independent notary public whose business is limited to administering oaths, witnessing signatures, and certifying documents is 541199. This six-digit designation is officially titled “All Other Legal Services.” The classification explicitly includes notary public services as an illustrative example of an establishment providing specialized legal or paralegal services.
The 541199 code is part of the broader 5411XX Legal Services industry group, situated within the Professional, Scientific, and Technical Services sector. A key distinction exists with NAICS code 541120, “Offices of Notaries,” which applies to establishments empowered to draft, approve, or execute legal documents, such as wills or real estate contracts. Since most notaries public are generally prohibited from providing legal advice or drafting documents, the 541199 code remains the standard and most accurate classification for the general practice of notarization.
Why Notaries Fall Under “All Other Legal Services”
The classification of notaries under the 5411XX Legal Services series, despite their non-attorney status, is based on the official, government-sanctioned nature of their work. The core function of a notary public is to act as an impartial witness, performing a statutory act that gives legal weight and authenticity to a signature or document. This process of authentication, which involves verifying identity and ensuring voluntary signing, is considered a specialized legal formality.
The NAICS system places the notary function in the legal services sector because the acts performed are prerequisites for legal validity in a wide range of transactions, including real estate, finance, and probate. This placement separates notaries from purely administrative or clerical support roles. For instance, the 561XXX series, which covers Administrative and Support Services, is not appropriate because the notary’s authority is derived from a state commission and involves a legal authorization.
Related NAICS Codes for Specialized Notary Services
The choice of NAICS code can change if the notary public’s business model is concentrated on a specialized activity that generates the majority of its revenue. The general rule for NAICS classification is to select the code that describes the primary business activity, which accounts for the highest percentage of sales or receipts. This principle is relevant for notaries who have expanded their scope beyond general notarization.
Loan Signing Agents
Notaries who primarily work as Loan Signing Agents (LSAs) often find their business closely linked to the financial sector, which can justify the use of an alternative NAICS code. If the LSA business is heavily integrated into the mortgage and lending process, a code within the finance and insurance sector may be more reflective of the primary revenue stream. For example, some LSAs may consider codes like 522310, Mortgage and Nonmortgage Loan Brokers, or other classifications related to credit intermediation. The argument for using a finance-related code is strongest when the LSA’s activities are about facilitating the loan closing process rather than solely performing the notarial act.
Mobile Notary Services
A notary operating a mobile service is still fundamentally performing legal acts, meaning NAICS 541199 generally remains the most appropriate classification. However, if the business has expanded to offer high-volume administrative support services alongside notarizations, a code within the 561XXX series might be considered. This would only apply if the administrative support, such as document preparation, courier services, or general secretarial work, constitutes the bulk of the company’s income. NAICS guidance prioritizes the legal nature of the notary commission over the logistical method of service delivery.
Other Business Support Services
When a notary public bundles their service with other non-notarial business support functions, the classification depends on where the revenue is concentrated. If a notary also offers services like basic bookkeeping, virtual administrative assistance, or general business consulting, they might look at the 5614XX series, such as 561499, All Other Business Support Services. The decision to deviate from the 541199 legal service code must be made carefully, requiring a verifiable majority of receipts to come from the non-notarial support services to ensure accurate government reporting.
Practical Uses of the NAICS Code
The six-digit NAICS code is a functional data point required for several administrative and financial reporting purposes for an independent notary business. The most frequent application is during the preparation of the annual federal income tax return, specifically on the IRS Schedule C, Profit or Loss From Business.
Consistency is important when reporting the code, as the IRS and state agencies use it to benchmark a business’s income and expense ratios against industry averages. Furthermore, the NAICS code is often a prerequisite for official state and local business registrations, vendor applications, and for obtaining small business certifications. The Small Business Administration (SBA) uses this code to determine eligibility for certain government contracts, loans, and grant programs.