An NAICS Code (North American Industry Classification System) is used by government agencies to identify your LLC’s type of business activities.
Everything You Need To Know About NAICS Codes For Your LLC
For you to set up an LLC in some states, you will need to have a NAICS code. NAICS, which is short for the North American Industry Classification System (NAICS). This code will qualify you to obtain grants and buy contracts from government institutions.


What Is The Meaning Of NAICS Codes?
A NAICS code contains 6 numbers that are assigned by oneself. The function of the NAICS codes is to categorize business organizations according to their industries, sectors, and subsectors.
NAICS, which stands for the North American Industry Classification System, categorizes companies and business organizations in the United States of America (USA), Canada, and Mexico and helps collect important business data to study economic performance.
Should I Have A NAICS Code?
Not all states will need you to have a NAICS code when setting up your LLC. Therefore, you need to confirm if your state requires you to have a NAICS code, and if it is so, it may be impossible to set up your LLC with the NAICS code.
The following is a list of the states where a NAICS code is needed for your LLC formation:
How Do I Use NAICS Codes?
NAICS codes are used to decide which businesses qualify to access specific government grants, government contracts, and the Small Business Administration’s certificate.
Additionally, NAICS codes improve your likelihood of securing debts from commercial lenders. Commercial lenders always rely on industry comparisons to identify businesses that qualify to borrow money from them.
How Does NAICS Codes Help The Government?
NAICS is mainly used by the government for regulatory and management reasons. NAICS code helps in developing classification criteria with subcategories to identify the businesses that are eligible for small business loans issued through SBA.
Other ways the government may use the NAICS code include the following:
The federal and state governments rely on codes in all the economic sectors as well as public administration to ensure businesses comply with administrative, contracting and tax guidelines.
Additionally, the government uses NAICS codes to gather, organize and study data from different industrial sectors; NAICS codes assist the government to publish economic data in statistical form.
How Can I Get A NAICS Code?
You can easily get a NAICS code that suits the type of your business. We have provided the following instructions to enable you to obtain a NAICS when forming your LLC:
Go to the NAICS website
Use the “NAICS Search” bar to find your business’ industry of operation (i.e., restaurant, and plumbing among others)
To get more information on the code, click the NAICS title that best illustrates and defines your business activity.
Please note: If your business wants to venture into more than one economic activity, go for a secondary NAICS code; a business is allowed to select more than a single NAICS code.
Get in touch with the US Census Bureau via 1-888-756-2427 to get assistance if you are unable to locate your exact co
