How to select company SIC code?
Selecting a SIC code is a straight-forward process. The first step is to identify the primary industry your company operates in.
Basic Guide for selecting a correct SIC code
Identify your industry (the first two digits identify the main industry):
Within each general industry category, a SIC code breaks down into more specific industries. For common and popular industries (ie: Doctor offices, plumbers, car dealerships), there is an exact SIC code match for the industry. For other industries (ie: Computer technology, miscellaneous manufacturing, new industries, etc) there might not be an exact match. Therefore it is important that you select a code that closely relates to your main line of business. There is usually a NEC (not elsewhere classified) option for a SIC code within each industry.
Example 1: If you are a Manufacturing company, do not select a Retail SIC code even though there is a closer keyword match to the products you manufacture. A manufacturer is a manufacturer and is not allowed to select a retailing SIC code. This applies for all industries.
Example 2: If you are a Consulting company for the mining industry, make sure you select a consulting company SIC code for your business and not a mining company SIC code.
What is a Primary SIC code?
Each and every company will have a primary SIC code. This number indicates a company’s primary line of business. What determines a company’s primary SIC code is the code definition that generates the highest revenue for that company at a specific location in the past year.