Who Assigns SIC Codes? How Businesses Determine Their Primary SIC Classification
There is no single government agency that assigns SIC codes. Businesses apply SIC classifications themselves based on their primary economic activity, typically at the establishment (location) level. Government agencies may request SIC codes, but they do not centrally assign them.
Standard Industrial Classification (SIC) codes are a long-standing system used to categorize businesses by industry. Rather than being centrally issued, SIC codes are self-applied classifications that describe what a business primarily does. They are widely used across government filings, commercial databases, credit systems, and market research tools.
Who Determines a Company’s SIC Code?
SIC codes are not assigned by a single authority. Businesses select the SIC code that best reflects their primary line of business by referencing official SIC definitions and industry usage.
No central assignment authority
There is no federal or state agency that enforces a universal SIC assignment. Codes are applied by businesses, data providers, and reporting systems using published SIC definitions.
Government use vs. assignment
While agencies do not assign SIC codes, they may request them on forms and filings—such as tax documentation, OSHA records, or regulatory surveys—to classify business activity consistently.
Establishment-Level Classification
SIC codes are typically applied at the establishment level, not the enterprise level. Each physical location is classified based on the primary activity performed at that site.
Multi-location reminder: If you operate in multiple states or perform different functions across locations, each establishment should be reviewed independently. For example, a retail storefront (SIC 5211) and a distribution warehouse (SIC 4225) within the same company are distinct establishments and may legitimately carry different SIC codes.
The Role of SICCODE.com
While SIC codes are self-applied, accurate classification depends on authoritative reference material and consistent interpretation. SICCODE.com provides tools and documentation to help businesses identify, validate, and document SIC codes correctly.
What Is a Primary SIC Code?
Every establishment has a primary SIC code. This code reflects the activity responsible for the largest share of revenue—or an accepted proxy such as production value or employment—during the prior year.
How the primary code is determined
When multiple activities occur at a location, the primary SIC corresponds to the dominant economic activity performed at that site.
Why accuracy matters
The primary SIC code affects how a business is grouped in research datasets, compared to peers, and interpreted by analysts, lenders, and regulators.
Steps to Determine the Correct SIC Code
- Identify core activities: List all activities performed at the location and determine which generates the highest revenue.
- Review official definitions: Use the SIC Code Lookup / Directory.
- Select the closest match: Choose the SIC that best represents the dominant activity.
- Cross-check consistency: Compare with similar businesses and industry norms.
- Document and register: Record the code internally or via the SIC Code Identification Tool.
Ongoing Classification Responsibility
SIC classification should be reviewed periodically. As businesses expand, relocate, or shift operational focus, their primary economic activity may change. Regular review ensures that SIC assignments remain accurate, defensible, and aligned with actual operations.