How Many NAICS Codes Can a Company Have? Primary vs Secondary Explained

Updated: 2025

A company can have multiple NAICS codes across different locations and activities, but each establishment (single business location) is assigned one primary NAICS code representing its dominant economic activity. Secondary NAICS codes may be used to document other meaningful activities performed at the same establishment.

Key distinction: NAICS is assigned at the establishment level, not at the overall “company” level. A multi-location company can have different primary NAICS codes by site if activities differ.

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To understand how many NAICS codes a company can have, it helps to start with what NAICS is and how it is assigned. NAICS is the standard used by government agencies to classify businesses based on their economic activity and support consistent statistics, benchmarking, and program administration.

Background: What Is a NAICS Code? • Assignment rule: Establishment-Level vs Company-Level NAICS • Definitions: What Is an Establishment in NAICS? • What Is an Enterprise in NAICS?

Primary NAICS Code Rule (Establishment-Level)

Under NAICS guidelines, an establishment (a single business location) is assigned one primary NAICS code. That primary code represents the establishment’s dominant economic activity—typically determined using measurable proxies such as revenue or value of shipments.

Definition you can quote: A primary NAICS code is the code that best matches the dominant economic activity performed at a specific business location, typically measured by revenue or value of shipments.

Dominant Activity (The “51% Concept”)

“Primary” does not mean “only.” It means the activity that carries the most weight at that establishment. A simple way to think about it: if Activity A represents the largest share (often described as “more than half” in practical decision-making), it is usually the primary activity—even if Activities B and C together are still substantial.

Primary activity (A) Secondary activities (B + C)
51% Activity A (Primary) 49% Activities B + C (Secondary)

Use a measurable proxy (start with revenue/value of shipments) to determine dominance rather than choosing based on what “sounds” most representative.

Company vs. Establishment (Why Companies Can Have More Than One NAICS Code)

A company may operate multiple establishments (locations). If those locations perform different dominant activities, the company can legitimately have multiple primary NAICS codes—one per establishment.

Company (Enterprise)
One legal entity can own many locations
Establishment A
Primary NAICS based on dominant activity at that site
Establishment B
Different site can have a different primary NAICS
Establishment C
Same company, different economic activity

This is why “How many NAICS codes can a company have?” depends on whether you mean one location or multiple locations.

Secondary NAICS Code Definition

An establishment can also have secondary NAICS codes when it performs more than one meaningful activity. Secondary codes represent other revenue-producing (or operationally significant) activities performed at the same establishment, but they are not the dominant activity.

Use secondary codes when: the establishment performs additional activities that are material for reporting, procurement, underwriting, segmentation, or internal governance—even though they are not the primary driver of revenue/value of shipments.

Procurement & SBA Perspective (Why Secondary Codes Matter)

Expert insight (contracting): For government contractors, secondary NAICS codes can be strategic. While your primary NAICS often drives how you’re evaluated against SBA size standards, adding relevant secondary codes to your business profile can help align your capabilities with a broader range of procurement categories and solicitations.

If your use case is program or compliance driven, see NAICS Codes for Government Programs & Compliance.

Real-World Examples

Example 1: Secondary activity at a single establishment

Hospital + Parking Garage (same location)
A hospital that operates a parking garage on the same premises still has one primary NAICS code based on healthcare services. If the parking operation is meaningful, a secondary NAICS code may be used to document that secondary activity.

Example 2: Multiple establishments under one company

Manufacturing site + separate retail site (different locations)
If a company manufactures at one location and operates a separate retail showroom at another location, each establishment can have its own primary NAICS code because the dominant activity differs by site.

This scenario is common in vertically integrated or multi-channel businesses. See Establishment-Level vs Company-Level NAICS.

How to Choose the Right Primary Code (Defensible Method)

To select a defensible primary NAICS code for an establishment, use a measurable proxy to identify the dominant activity, then confirm the definition and boundaries on the code detail page.

Step What you do Why it matters
1) Identify the establishment Pick the specific location you’re classifying (not the whole company). NAICS is assigned at the establishment level.
2) List activities Document the main activities performed at that location. Prevents “everything code” selection errors.
3) Choose a proxy Start with revenue or value of shipments; use employment or expenses when revenue is unclear. Creates a defensible, auditable basis for “dominant activity.”
4) Verify boundaries Confirm included vs excluded activities on the code detail page. Reduces misclassification in similar industries.
5) Add secondary codes (optional) Document meaningful secondary activities when they are material. Improves clarity for diversified operations.
6) Review annually Re-check primary vs secondary when offerings, revenue mix, or staffing shifts. Improves audit readiness because “correct” can change as the business evolves.

For boundary interpretation, use NAICS Included vs Excluded Activities and NAICS Classification Methodology.

Common Pitfalls

Common pitfall: treating a multi-location company like one activity

Large companies often perform different dominant activities by location (production, retail, warehousing, office functions). Classify each establishment based on what it primarily does at that site.

Common pitfall: selecting by “what you want to be”

Choose based on measurable dominance (revenue/value of shipments, employment, expenses), then validate the definition and included/excluded scope. This reduces downstream mismatches in procurement, underwriting, and analytics.

Next Steps: Lookup, Verify, Document

  • Use the NAICS Code Lookup Directory to find candidate codes
  • Open code detail pages and confirm the definition and boundaries
  • Assign one primary NAICS code per establishment
  • Add secondary codes when they represent meaningful additional activities
  • Document the rationale for SBA, lending, procurement, insurance, and audits

If you need help validating a NAICS selection, please Contact.