Whether your line of work changed or you chose the wrong code, changing your NAICS code is a simple procedure. Here’s what to know:
What is a NAICS code?
The North American Industry Classification System (NAICS) is the government standard for collecting data on American businesses. In this system, different industries are associated with their own unique set of numbers (aka NAICS codes). Chances are you’ll be asked for your business’s NAICS code at some point, in which case you would simply search the NAICS Code List and select the number that best represents your line of business.
No person or entity issues NAICS codes, and nor will you ever have to register for one. These numbers are completely free, usually self-selected, and mostly used for statistical purposes.
When would I use a NAICS code?
Some government agencies, like OSHA, will ask for your NAICS code. And some states (like Alaska) will ask you to include a NAICS code when filing your formation documents with the state. The U.S. Census Bureau also uses NAICS codes to generate official reports on changes and trends in the U.S. business economy.
Though the North American Business Classification System was developed by the federal government, the use of NAICS codes isn’t limited to government organizations. Business insurance agencies or private market research firms may use NAICS codes to collect statistical data or research business trends.
How do I change my NAICS code?
This depends, in part, on how often you’ve used a NAICS code. Since your NAICS code isn’t officially registered with any one issuing agency, there isn’t an official way to change it. Instead, you’ll have to reach out to each organization to whom you provided a NAICS code and inform them of your new number.
Though a self-selected code may seem like a trivial thing, some government agencies use NAICS codes to inform certain business sectors of applicable tax breaks, loan opportunities, or changes to the law—so it’s best to keep your NAICS code as accurate as you can.