You’ll probably need to know your company’s North American Industry Classification System (NAICS) code if you’re launching a new firm or forming an LLC. The U.S. government uses this six-digit code system to categorize and gather information on enterprises depending on their principal industry. Here’s how to locate the NAICS code for your LLC.
Identifying your company’s main operations is the first step in locating your NAICS code. This comprises the kinds of goods and services you offer, the markets you target, and your revenue generation strategy. It’s crucial to be as descriptive as you can when describing your firm because NAICS codes are based on the main activity.
When you are certain of your company’s operations, you can utilize the U.S. Census Bureau website’s NAICS code lookup tool. You can use this tool to browse the NAICS hierarchy or conduct a keyword search for your code. The tool can also be used to look up related codes or determine which industries each code applies to.
The NAICS manual for your industry can be reviewed if you’re unsure which code to use. Each code and the kinds of enterprises that come under each code are described in great length in the guidebook. The guidebook is available on the website of the U.S. Census Bureau.
Can an LLC Use More Than One NAICS Code? Yes, if an LLC engages in various principal business activities, it is possible for it to have multiple NAICS numbers. Each code should represent a different line of business or source of income. A consulting company that sells software, for instance, would require two distinct NAICS codes—one for consulting services and another for software sales. How to Discover an Organization’s NAICS Code
Use the NAICS code lookup tool on the U.S. Census Bureau website to find the NAICS code for another company. You can conduct a search using the business name or the kind of goods or services the firm offers. SIC codes, which came before the NAICS system, can also be used to find the company. Do All Businesses Have an NAICS Code?
No, not every business has an NAICS code. A NAICS code is only necessary for businesses that conduct their principal business operations. A holding corporation, for instance, would not have an NAICS code if it only owns other businesses and does not offer any goods or services. Does the NAICS Code for Sole Proprietors Exist?
Yes, if they conduct their core business operations, sole owners must obtain an NAICS code. Instead of a unique tax ID number, people may, however, use their own Social Security number. The same procedures you would use for an LLC or another form of business apply when determining your NAICS code as a sole owner.
You can use the NAICS search tool on the US Census Bureau website to discover the six-digit NAICS code for your LLC. You can type in keywords that characterize your company’s operations and then pick the industry from the search results that most closely suits your company. The matching six-digit NAICS code for your company will be shown by the tool. As an alternative, you can look through the NAICS handbook on the Census Bureau website to locate your code according to your industry and commercial operations.