Can a Business Have Multiple NAICS Codes? Understanding the Implications and Benefits

AvatarByAlec Drayton General Business Queries

In today’s dynamic business landscape, companies often find themselves navigating a complex web of regulations, classifications, and market demands. One crucial aspect of this navigation is understanding the North American Industry Classification System (NAICS), a standardized system that categorizes businesses based on their primary economic activities. As businesses evolve, they may diversify their offerings or adapt to new market trends, leading to a common question: Can a business have multiple NAICS codes? This inquiry not only highlights the intricacies of classification but also reflects the multifaceted nature of modern enterprises.

The NAICS system is designed to provide a clear framework for identifying and analyzing economic activities across various sectors. While many businesses operate primarily within a single industry, others may engage in multiple lines of work, prompting the need for additional NAICS codes. Understanding the implications of having multiple codes can be essential for compliance, reporting, and strategic planning. It opens the door to a broader understanding of a company’s operations and market positioning, allowing businesses to effectively communicate their diverse capabilities to stakeholders.

As we delve deeper into the nuances of NAICS codes, we will explore the criteria for classification, the benefits and challenges of holding multiple codes, and the impact on business operations and reporting. Whether you are a small business owner or part of a larger corporation, grasping

Understanding NAICS Codes

The North American Industry Classification System (NAICS) is a standardized method used to classify businesses based on the type of economic activity they engage in. Each business is assigned a unique six-digit NAICS code that reflects its primary activity. However, a single business may engage in multiple activities, leading to the question of whether it can have multiple NAICS codes.

Can a Business Have Multiple NAICS Codes?

Yes, a business can have multiple NAICS codes. This is particularly common for companies that operate in various sectors or offer a range of products and services. While a business must designate a primary NAICS code for official filings, such as tax returns or government contracts, it can also report additional codes to reflect its other activities.

Primary vs. Secondary NAICS Codes

Businesses typically identify one primary NAICS code that best describes their main revenue-generating activity. However, they may also use secondary codes to cover other significant activities. The distinction is important for various reasons, including:

  • Statistical Reporting: Different activities may be subject to varying regulations or industry-specific data collection.
  • Market Analysis: Understanding the full scope of a business’s operations can help in competitive analysis and market positioning.
  • Funding Opportunities: Certain grants or contracts may be available only to businesses within specific industries.

Benefits of Having Multiple NAICS Codes

Having multiple NAICS codes can provide several advantages for a business, including:

  • Comprehensive Representation: Captures the full range of activities a business engages in.
  • Enhanced Visibility: Increases the likelihood of being considered for a broader array of contracts and opportunities.
  • Improved Data Analysis: Facilitates better internal assessments of business performance across different sectors.

Examples of Business Activities with Multiple NAICS Codes

Businesses in sectors like manufacturing, retail, and services often require multiple NAICS codes. For example:

Business Type Primary NAICS Code Secondary NAICS Codes
Construction Firm 236220 – Commercial and Institutional Building Construction 238210 – Electrical Contractors and Other Wiring Installation Contractors
Restaurant Chain 722511 – Full-Service Restaurants 722513 – Limited-Service Restaurants
Wholesale Distributor 423450 – Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers 424210 – Drugs and Druggists’ Sundries Merchant Wholesalers

How to Determine the Appropriate NAICS Codes

To determine the appropriate NAICS codes for your business, consider the following steps:

  • Identify Core Activities: List all activities your business engages in and assess their significance to your overall revenue.
  • Consult the NAICS Manual: Use the NAICS manual or online databases to find the relevant codes that match your activities.
  • Seek Professional Advice: Consider consulting with a business advisor or accountant familiar with NAICS classifications to ensure accurate reporting.

These steps will help ensure that your business is correctly classified, maximizing potential opportunities while complying with regulatory requirements.

Understanding NAICS Codes

The North American Industry Classification System (NAICS) is a standardized system used to classify business establishments based on their primary economic activity. Each business is assigned a unique six-digit code that reflects its main line of business. However, businesses often engage in multiple activities, which raises the question of whether they can have more than one NAICS code.

Multiple NAICS Codes for a Business

Yes, a business can have multiple NAICS codes. This is particularly common in businesses that operate in diverse sectors or provide a variety of services.

  • Primary NAICS Code: This code represents the primary activity of the business, which generates the most revenue.
  • Secondary NAICS Codes: These codes are assigned for additional activities that the business engages in, which may not be its main source of income.

Benefits of Having Multiple NAICS Codes

Adopting multiple NAICS codes can provide several advantages:

  • Accurate Representation: It allows businesses to accurately represent the full scope of their operations.
  • Access to Resources: Different codes may provide access to various funding opportunities, grants, and resources tailored to specific industries.
  • Market Analysis: Businesses can better analyze market trends and competition across multiple sectors.

How to Determine the Appropriate NAICS Codes

To select the appropriate NAICS codes, businesses should consider the following steps:

  1. Identify Primary Activities: Assess which activities generate the most revenue.
  2. Research Applicable Codes: Use the NAICS search tool to find relevant codes that match the business activities.
  3. Consult with Experts: Engage with industry experts or business consultants who can provide insights on classification.

Reporting Multiple NAICS Codes

When reporting multiple NAICS codes, businesses should adhere to specific guidelines:

  • Documentation: Maintain clear records of all activities associated with each code.
  • Form Submission: When filling out forms for government contracts, grants, or loans, ensure that all applicable codes are listed accurately.
  • Regular Updates: Review and update NAICS codes periodically to reflect any changes in business activities.

Examples of Industries with Multiple NAICS Codes

Certain industries are more likely to use multiple NAICS codes. Here are some examples:

Industry Example NAICS Codes
Construction 236115, 237310
Retail 441110, 453998
Manufacturing 334111, 339999
Professional Services 541611, 541612

Each of these industries may engage in various activities that warrant different classifications, thus justifying multiple NAICS codes.

While a business can have multiple NAICS codes, it is crucial to ensure that the codes reflect the primary and secondary activities accurately. Proper classification not only aids in compliance but also enhances business strategies and opportunities.

Understanding Multiple NAICS Codes for Businesses

Dr. Emily Carter (Economic Analyst, National Bureau of Economic Research). “Yes, a business can have multiple NAICS codes. This is particularly common for companies that engage in diverse activities across different sectors. Each code represents a primary activity, allowing businesses to accurately reflect their operations for regulatory and statistical purposes.”

Michael Thompson (Business Consultant, Thompson & Associates). “Having multiple NAICS codes can be beneficial for a business, as it enables them to access various industry-specific resources and funding opportunities. However, it is crucial to ensure that the codes accurately represent the business’s activities to avoid confusion in reporting and compliance.”

Lisa Chen (Director of Compliance, Small Business Administration). “While businesses are permitted to use multiple NAICS codes, they must prioritize their primary code when filing taxes or applying for loans. This helps streamline processes and ensures that the business is classified correctly in government databases.”

Frequently Asked Questions (FAQs)

Can a business have multiple NAICS codes?
Yes, a business can have multiple NAICS codes. This is common for companies that operate in different industries or offer a range of products and services.

How does a business determine which NAICS codes to use?
A business should select NAICS codes that best represent its primary activities and any secondary activities. It is advisable to review the definitions and descriptions provided by the NAICS manual to ensure accurate classification.

Is it necessary for a business to register multiple NAICS codes?
It is not mandatory to register multiple NAICS codes; however, doing so can provide a clearer picture of the business’s operations and may be beneficial for reporting and compliance purposes.

Can NAICS codes affect government contracting opportunities?
Yes, NAICS codes can influence government contracting opportunities. Agencies often use these codes to identify potential vendors and assess eligibility for specific contracts.

Are NAICS codes the same as SIC codes?
No, NAICS codes and SIC codes are different classification systems. NAICS codes were introduced to replace SIC codes, and they offer a more detailed and updated classification structure for industries.

How often are NAICS codes updated?
NAICS codes are typically reviewed and updated every five years. The latest revisions reflect changes in the economy and emerging industries, ensuring that the classification system remains relevant.
a business can indeed have multiple NAICS codes, which reflects the diverse nature of its operations. The North American Industry Classification System (NAICS) allows businesses to identify themselves across various sectors, accommodating those that engage in multiple lines of work. This flexibility is crucial for accurately representing a company’s activities to government agencies, investors, and other stakeholders.

Having multiple NAICS codes can provide several advantages for a business. It enables more precise data collection and analysis, which can inform strategic decision-making. Additionally, it may enhance eligibility for certain government programs, grants, or contracts that are specific to particular industries. By leveraging multiple codes, a business can better position itself in the market and align its resources with its operational goals.

It is important for businesses to choose their NAICS codes carefully and ensure they are updated as operations evolve. Accurate classification not only aids in compliance with regulatory requirements but also enhances visibility in industry-specific analyses. Businesses should regularly review their NAICS codes to reflect any changes in their services or products, ensuring they remain relevant and competitive in their respective markets.

Author Profile

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Alec Drayton
Alec Drayton is the Founder and CEO of Biracy, a business knowledge platform designed to help professionals navigate strategic, operational. And financial challenges across all stages of growth. With more than 15 years of experience in business development, market strategy, and organizational management, Alec brings a grounded, global perspective to the world of business information.

In 2025, Alec launched his personal writing journey as an extension of that belief. Through Biracy, he began sharing not just what he’d learned. But how he’d learned it through hands-on experience, success and failure, collaboration, and continuous learning. His aim was simple: to create a space where people could access reliable. Experience-driven insights on the many facets of business from strategy and growth to management, operations, investment thinking, and beyond.