The North American Industry Classification System (NAICS) is a coding system used to categorize businesses by industry. NAICS codes are self-assigned, meaning that businesses pick the code that best represents their core industry. NAICS codes are important for small businesses because they help determine if a company qualifies as a small business based on certain NAICS size standards established by the Small Business Administration (SBA).

To find your NAICS code, you can view the NAICS code list at the U.S. Census Bureau. Most businesses will have a primary NAICS code, but they can also have multiple NAICS codes if they sell multiple products and services. The SBA assigns a size standard to each NAICS code, and most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business. However, there are exceptions by industry, which can be viewed in Title 13 Part 121.201 of the Code of Federal Regulations (CFR) or in the SBA’s table of small business size standards.

It is important to note that unless a business is a government contractor, it is not required to have a NAICS code. However, having a NAICS code can be beneficial for small businesses in the private sector. For example, having the right NAICS code assigned to a business can help lenders better understand the risks when compared to other businesses in the same industry, which can help with small business loan consideration and approval.