Businesses and government organizations use the North American Industry Classification System (NAICS) to categorize industries according to their level of economic activity. It was initially released in 1997, and since then, various revisions have been made to reflect changes in the economy. However, how frequently do these changes occur and what impact do they have on businesses? The NAICS are revised every five years.
The most current NAICS revision, NAICS 2017, was published in 2017. The system underwent a number of revisions for the sixth edition to better represent the situation of the economy. For instance, certain industries were merged to reflect changes in how firms function, while others were added to represent the expansion of e-commerce and other digital industries.
Every five years, NAICS is updated to make sure it is still applicable and helpful to businesses and government organizations. This enables the system to adapt to changes in the economy and to incorporate new industries as they develop.
Although the federal government does not compel businesses to provide NAICS codes on certain forms or filings, certain states do. For instance, while applying for a business license or submitting their state tax return, businesses in California are obliged to furnish their NAICS number. It’s crucial to verify with your state’s business agency to see if an NAICS code is necessary because other states might have comparable requirements.
Your NAICS code is your six-digit business code. Your company is categorized using this code according to its economic activity. Your company’s sector is represented by the first two digits of the code, while the subsector and industrial group are represented by the last four numbers. How can I locate my industry code?
Utilizing the NAICS search feature on the Census Bureau’s website, you can locate your industry code. Just type a keyword that best characterizes your company into the tool, and it will return a list of potential NAICS numbers. Additionally, you can search the NAICS handbook for the code that best describes your company. Do I require an NAICS code for my company?
Although the federal government does not mandate having an NAICS code, having one can be advantageous for businesses. It can aid in the identification of your rivals, the comparison of your company’s performance to industry norms, and the provision of useful data to governmental and other entities. Additionally, it’s worth checking with your state’s business office to determine if an NAICS code is required for certain files or registrations as some jurisdictions might.