What is the NAICS code?
The NAICS code is a system used by federal statistical agencies to categorize businesses based on their economic activities. It allows for reliable and consistent comparisons of businesses across various sectors in the United States, Canada, and Mexico.
Why is it important to identify the correct NAICS code for your business?
The NAICS code is crucial for obtaining accurate business data, understanding market trends, and targeting potential customers. It also plays a significant role in government contracting, business registrations, and research initiatives.
How does the NAICS classification system work?
The NAICS classification system is hierarchical, with 5-digit industry codes representing broad sectors of the economy. Each 5-digit code can be broken down into more detailed 6-digit codes, enabling granular categorization of businesses based on their specific activities.
How do I find my 6-digit NAICS code?
Finding your 6-digit NAICS code is a straightforward process. Start by visiting the official NAICS website (naics.com) and following these steps:
Step 1: Access the “Search” feature on the website’s home page.
Step 2: Enter a keyword or a brief description of your primary business activity in the search bar. For example, if you run a bakery, you can enter terms like “bakery,” “pastry,” or “food production.”
Step 3: Review the suggested results and select the option that best matches your business activity. The system will display a list of potential matches along with their corresponding NAICS codes and descriptions.
Step 4: Click on the option that closely aligns with your business to reveal its detailed description.
Step 5: Scroll down to the “6-Digit NAICS Codes” section to find your precise code. This 6-digit number provides a more specific classification for your business niche.
Can I use multiple NAICS codes for my business?
Yes. It is possible for a business to have multiple NAICS codes if it operates in more than one industry or engages in different activities. This can help provide a comprehensive understanding of the business’s operations.
How often do the NAICS codes get updated?
The NAICS codes are reviewed and updated every five years to ensure they accurately reflect changes in the business landscape and emerging industries. The most recent update occurred in 2017, with the next revision expected in 2022.
Finding your 6-digit NAICS code is an important step in accurately classifying your business. It allows you to access valuable data, strengthens your competitive advantage, and aids in industry research. Take advantage of the user-friendly NAICS website to find your perfect match and stay aligned with the ever-evolving business landscape.