What Is My NAICS Code? How to Identify Your Primary Business Activity
Your NAICS code is the code that best represents the primary economic activity performed at a specific business location (establishment). A defensible selection identifies the dominant activity using measurable proxies such as revenue, value of shipments, operating expenses, capital investment, or employment—then confirms the code’s definition and boundaries.
Compliance standard: For SBA, banking, insurance, procurement, and audits, the “correct” NAICS code is the one that matches the establishment’s dominant activity and aligns with the official definition and included/excluded boundary logic.
- Understanding the NAICS hierarchy
- Search vs. classify (workflow diagram)
- Establishment-level multi-code scenario (real-world example)
- How primary activity is determined
- Decision proxy hierarchy (tie-breakers)
- Find your NAICS code
- Defensible selection checklist
- Register your NAICS code
- Why this matters for SBA programs
- Support
Understanding the NAICS Hierarchy (The Drill-Down Effect)
NAICS is hierarchical by design. Each additional digit narrows the industry definition, moving from broad sectors to specific national industries. This is why “finding your NAICS” usually requires drilling down to the 6-digit level.
The 6-digit level is typically the operational standard for SBA programs, government reporting, procurement, banking, and underwriting.
Search vs. Classify (Make the Workflow Concrete)
Keyword search helps you discover candidate codes. Classification is the verification step that makes the selection defensible.
Example: “landscaping”, “residential remodeling”, “data processing”
Shortlist codes that appear relevant
Read the official definition + scope notes
Confirm included vs excluded activities
Document why it matches the dominant activity
The Code Detail Page is the mandatory final stop for a defensible NAICS selection—especially for SBA, insurance, lending, and procurement workflows.
Data governance note: SICCODE.com is designed to function as a classification validation engine—not just a directory—by emphasizing definition-first selection, boundary checks, and establishment-level logic.
Establishment-Level Multi-Code Scenario (Real-World Example)
Example: One company, two establishments, two NAICS codes
A company manufactures furniture in North Carolina (manufacturing activity) and operates a separate retail showroom in New York (retail activity). Even though it is one company, NAICS is assigned by establishment:
- North Carolina (manufacturing facility): classified under a manufacturing sector (commonly Sector 31–33), based on the production activity performed at that site.
- New York (retail showroom): classified under a retail trade sector (commonly Sector 44–45), based on the retail selling activity performed at that site.
This separation helps ensure that underwriting and compliance workflows (including workers’ compensation risk profiling and SBA size standards) reflect the correct economic activity at each location.
For the establishment rule, see Establishment-Level vs Company-Level NAICS.
How Primary Business Activity Is Determined
NAICS classification is based on identifying the dominant activity performed at an establishment—not the full set of services the business offers. Dominance is typically determined using measurable proxies.
Common pitfall: the “Everything” search
Do not look for a code that covers 100% of your activities. NAICS is designed to identify your dominant activity. If you perform Landscaping (561730) and Snow Removal (561790), select the code representing the majority of your annual effort.
Decision Proxy Hierarchy (Tie-Breakers When It’s Not Obvious)
When selecting a primary NAICS code, revenue or value of shipments is generally the first-choice proxy. If revenue is not a clear indicator (common for some non-profits, internal service centers, or cost-only facilities), use a tie-breaker proxy that best reflects the dominant activity at that establishment.
| Proxy (priority order) | Why it’s used | Best for |
|---|---|---|
| 1) Revenue / value of shipments | Most direct measure of primary output in many business contexts | Most for-profit establishments |
| 2) Employment | Captures dominant labor allocation when revenue is mixed or unclear | Service-heavy operations |
| 3) Operating expenses / production costs | Reflects the dominant operational footprint when outputs aren’t sold | Internal support facilities, cost centers, some non-profits |
| 4) Capital investment | Signals dominant activity for asset-intensive establishments | Manufacturing, energy-intensive or equipment-heavy operations |
To interpret included and excluded boundaries for similar-looking codes, use NAICS Included vs Excluded Activities and NAICS Classification Methodology.
Find Your NAICS Code
Use the NAICS Code Lookup Directory to search by activity keywords. Then open the relevant code detail pages to verify definitions and boundaries before selecting the final 6-digit code.
Defensible NAICS Selection Checklist
- Identify the specific establishment being classified
- List the activities performed at that location
- Select the dominant activity using a measurable proxy (start with revenue)
- Confirm included and excluded activities on the code detail page
- Document the rationale for SBA, lending, procurement, or underwriting use
Register Your NAICS Code on SICCODE.com
Once you have identified a defensible 6-digit NAICS code, you can formally associate that classification with your business profile on SICCODE.com.
Why registration matters: In banking, insurance, procurement, and compliance workflows, your NAICS code is treated as a declared business attribute. Publishing it in a structured, reference-backed environment reduces ambiguity and improves downstream trust.
- Disclose your selected NAICS code in a classification-first context
- Create a consistent reference point for partners, lenders, and agencies
- Support internal data governance and audit readiness
- Reduce discrepancies between self-reported and third-party assignments
Register your NAICS code and create a business profile
Why This Matters for SBA Programs
SBA eligibility is NAICS-specific. SBA size standards (revenue- or employee-based) are tied to the 6-digit NAICS code you use. Selecting the wrong code can place you under the wrong size threshold and may affect eligibility for loans, certifications, and set-aside contracts.
For program-driven use cases, see NAICS Codes for Government Programs & Compliance.
Support
If you need help validating a NAICS selection for SBA, banking, insurance, procurement, or audits, please Contact Us.