NAICS Code

Small businesses are always looking for ways to grow their companies without spending tons of cash or expending lots of effort to do so. By obtaining a North American Industry Classification System (NAICS) code, entrepreneurs can help make their businesses attractive to various new industries. For example, having a NAICS code for an LLC can help the business qualify for government contracts, participate in new marketing activities, and even partake in certain natural resource sales. This guide walks through what an NAICS code is, how to get one for an LLC, and some of the opportunities that can come with it.

What is a NAICS code for LLCs?

Pronounced “NAKES” (like “snakes”), NAICS is a system that classifies firms by industry. The governments of countries across North America — the U.S., Canada, and Mexico — created this six-digit business classification system and rolled it out in 1997. Updates and improvements take place every five years. The most recent updates occurred in 2022, which are the improvements to the code currently in use.

How is it used?

These business codes for LLCs can help determine if a business is eligible for certain government grants and contracts. NAICS codes can also help a business owner determine if they qualify for certification from the U.S. Small Business Administration.

LLC NAICS codes can also improve a company’s chances of obtaining loans from commercial lenders. NAICS codes allow lenders to make industry comparisons to determine and identify the best-qualified small businesses for loans.

Importance of a NAICS Code

An LLC’s code is used to determine the size of the business. Using the NAICS Size Standards tool, a business owner can determine whether they are classified as a small business under the Small Business Administration rules. If the LLC qualifies, the owners can find specialized opportunities for small businesses using that NAICS code. The NAICS code can also help a company identify government contracting opportunities and pursue the ones it’s most qualified for.

How to Get a NAICS Code

But how does a business owner find their NAICS code? The great news is that these codes are self-assigned. Setting up an NAICS code quickly can be done in three easy steps, including:

1. Look up the NAICS code by keyword or industry;
2. Use the “business lookup” tool if there’s a similar, existing U.S. business that can act as a guide;
3. Select the LLC business code number next to the title that best describes the business to learn more about that particular code.

If a business has multiple activities, it can also select a secondary NAICS code. If an entrepreneur still needs help finding their specific code, they can call the U.S. Census Bureau’s toll-free number at 1-888-756-2427.

How to Look Up an LLC’s NAICS Code

Looking up an NAICS code is a fast, easy way to start on a journey towards new opportunities for a small business. Be sure to start with a NAICS lookup tool from either the government or a trade association. Check all resources, including the Drill Down Table and the NAICS Lookup Help tool to learn more about NAICS topics that can guide entrepreneurs to the right NAICS code for their LLCs.

How ZenBusiness Can Help

Once a business owner has picked out a business name and settled on the next great business idea, ZenBusiness’s LLC formation service is an excellent resource to get the company up and running quickly for $0 (plus state fees). ZenBusiness’s full suite of business services and tools supports entrepreneurs as they get started, helping them grow and thrive. They take care of formation, registered agent, document amendments, compliance, and more, so business owners can focus on growing the companies they love.