If you are forming an LLC and have been looking for a way to grow and expand, getting a North American Industry Classification System (NAICS) code can be a great way of securing government contracts, grants, and loans for your business.
Some states require businesses to obtain NAICS codes in order to register as LLCs, although this is very rarely the case. As you form your LLC, using NAICS codes enable you to properly classify your company by the size and type of industry or business that you are in.
Our NAICS code for LLC guide offers everything you need to know when it comes to NAICS code, including what it is, whether you need to get one in your state, and why it can be important when it comes to expanding your business.
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NAICS Code Lookup
Get the correct NAICS code for your LLC by using our NAICS Code Lookup tool below:
What is a NAICS Code for LLC?
NAICS (pronounced as “nakes”) is an industry classification system developed by the statistical agencies of the U.S., Canada, and Mexico.
NAICS is used in classifying businesses to help the government properly collect, organize, and analyze information on various industries It was adopted in 1997 to replace the Standard Industrial Classification (SIC) system.
A NAICS code is a six-digit coding system. NAICS codes include a list of industry titles where you can look up your LLC business if it falls into one of the categories.
Why Should I Get a NAICS Code?
Knowing your NAICS code categorizes your business and qualifies you for many small business-related programs.
NAICS codes are attributed to NAICS code size standards listed by the Small Business Administration (SBA).
Based on a NAICS code size standard, government agencies are able to determine whether or not your business is considered a “small” business. Thus, it’s important to know if your business will be eligible for specific opportunities based on your company size.
Below are several other reasons why it’s important to know your business’ NAICS code.
1. Understand Your Niche or Industry
NAICS codes help in identifying your niche markets. By determining the NAICS codes of your key competitors and markets, you can gain a better understanding of your industry, what your customers want, and how you can stand out from the competition.
2. Identify Customers and Competitors
If you want to know your customers and competitors, you can match NAICS codes to their current customer base. You can reach out to these leads, learn about their industry and convert them as new customers.
3. Obtain Government Grants, Contracts, and Loans
If you’re a small business providing certain goods and services, government contracts and loans are a great way to develop a great source of recurring revenue. You will need to know your NAICS codes when applying for GSA schedule, SBA 8a Business Development Program certification, or application for women, veterans or minority-based organizations.
4. Get Tax Benefits
The Internal Revenue Services (IRS) uses NAICS codes to determine whether your tax returns are accurate compared to businesses in your industry. In addition, the eligibility for tax breaks may depend on the business’ NAICS code.
5. Determine Insurance Rates
Insurance companies use NAICS codes for calculating insurance rates. By categorizing your LLC under the correct NAICS code, you could save your business significant costs on its insurance premiums.
6. Ensures Business Compliance
Government agencies use NAICS codes to ensure business compliance on federal and state levels. To avoid penalties and repercussions, it’s recommended to follow your state rules and regulations when assigning a NAICS code upon registering your business.
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Do I Need a NAICS Code?
Most states don’t really require assigning a NAICS code for forming an LLC. However, you may need a NAICS code if your state sets a NAICS code requirement along with your LLC formation.
Below are the list of states that require a NAICS code for forming an LLC:
How Do I Get a NAICS Code?
NAICS codes are self-assigned, which means that no other government agency or organization assigns you a NAICS code. It’s best to get one as soon as possible so you can start running your business.
You can use the steps outlined below to help you get a NAICS code for your LLC.
Step 1: Do a NAICS Code Lookup
Figuring out which NAICS code is right for you should be simple and easy. Use our NAICS Code Lookup finder on this page or visit our NAICS Code Lookup page.
Step 2: Select Your Industry
In the NAICS code lookup search bar, enter a keyword that describes your kind of business. You will find a list of industry titles containing that keyword where the corresponding NAICS Codes will appear.
For example, you can enter search phrases such as “real estate”, “insurance”, or “securities” if you’re in these industries.
Step 3: Determine Your NAICS Code
Select your NAICS industry title and code that best reflects your primary business activity. While most businesses only have one primary NAICS code, you can choose a secondary code if you conduct multiple business activities. You can find NAICS codes using our NAICS Code Lookup tool.
When forming your LLC, you need to enter the NAICS code in your formation document. Note that to get a NAICS code doesn’t require you to register with the NAICS Association.
If you’re still having trouble finding your NAICS code, you can contact the US Census Bureau for assistance via phone at (888) 756-2427 or via email at NAICS@census.gov.
NAICS Code for LLC FAQ
Who assign NAICS Codes to businesses?
No one assigns you a NAICS Code as they are self-assigned. This means that you select the code that best suits your business. You can use our NAICS Code Lookup to find your NAICS code for your business.
Is there a fee or renewal cost to assign a NAICS Code?
No. Searching and assigning a NAICS code to your business is free of charge.
Can my business have more than one NAICS Code?
Yes. If you have multiple business activities, you can pick a secondary NAICS code. More than one code can be chosen if you have more than one revenue-producing line of business. Find NAICS codes by using our NAICS Code Lookup tool.
Can I change the NAICS code for my business?
NAICS codes are reviewed every 5 years for revisions to keep up with the economic changes. This is the only time that changes to NAICS codes can be considered. The Office of Management and Budget (OMB), through its Economic Classification Policy Committee (ECPC), will solicit public comments through a notice published in the Federal Register. The comment period lasts for 90 days and the new codes will be released in 2022.
Do I have to register with the NAICS Association to get a NAICS code?
No. Getting a NAICS Code doesn’t require registering with the NAICS Association. However, you can register with the NAICS Association, which is entirely optional.
Where can I get a list of NAICS codes?
You can find a list of NAICS codes to determine your business classification by searching via our NAICS Code Lookup finder.
Can I use my NAICS Code to determine my SIC Code?
The US Census Bureau uses NAICS for classifying businesses. In 1997, NAICS was adopted to replace the Standard Industrial Classification (SIC) system. The SIC system is still in use and uses four numbers instead of six. Contact the US Census Bureau at (888) 756-2427 or NAICS@census.gov to find out how you can convert SIC codes to NAICS codes.