What Is a NAICS Code and How to Choose Yours

What is a NAICS code? It is a six-digit industry classification used to describe what a business does. Choose the code that best matches your main business activity, then check the code and size standard listed in each federal solicitation before bidding.

Your code helps you describe your services, research contracting opportunities, and understand whether you may qualify as a small business for a particular contract. It is a classification, not a license or a guarantee of eligibility.

What is a NAICS code?

NAICS stands for the North American Industry Classification System. It groups businesses by the type of work they do and gives each industry a six-digit code. Government agencies and businesses use the system to organize industry information and identify the work involved in a contract.

The code is a useful starting point when you research federal procurement, but it does not tell you everything about a contract. Read the full scope, requirements, and terms in the solicitation. A contract may involve work that crosses several industries, and the agency's description matters more than a code match alone.

NAICS code meaning and structure

The first digits place an industry in a broader sector, while the full six-digit code identifies a more specific industry. For example, two companies may both provide professional services but have different codes because their main work differs. The U.S. Census Bureau's NAICS information explains the classification system and provides industry descriptions.

A code's written description is just as important as its number. Read the definition and its included or excluded activities before settling on a code. If the description does not fit the work your company actually performs, a similar-sounding label is not enough reason to use it.

How to find my NAICS code

If you are asking how to find my NAICS code, start with the work your company performs, not the name of your business. A company name, website category, or list of services may be too broad to identify the best fit. Compare what customers pay you to do with the industry definitions.

Use this process to narrow down the choices:

1. List your main products and services. Focus on the work that best represents your business, and separate distinct service lines if you do several kinds of work.
2. Search the free NAICS code lookup with plain-language terms that describe those activities. Try more than one search term if the first results do not fit.
3. Read the complete description for each likely code. Check the definition and any included or excluded activities against your actual work.
4. Compare the likely code with codes used in relevant solicitations and with your business records. If the descriptions still leave you unsure, ask a free business adviser or procurement counselor for help.
5. Keep a note of why you selected the code and review it when your services change. Use the current description and standards rather than relying on an old form or saved search.

Choose the NAICS code for my business

The NAICS code for my business should reflect its principal activity, meaning the work that best describes what the business does. For a company with several lines of work, identify the main activity and consider whether other codes describe separate services or products. Do not select a code only because it appears to have more contract opportunities or a more favorable size standard.

A business can use more than one NAICS code when it performs work in different industries. Keep the list focused and supportable. For federal contracting, the code attached to a specific solicitation is selected by the contracting officer, so your preferred business code does not replace the solicitation's code.

A mismatch does not automatically disqualify you, but it can create confusion when you search for bids or assess small-business eligibility. Compare your business activity with the code in the notice and ask the contracting office about the solicitation if the scope and code seem inconsistent.

NAICS codes and small business size standards

The SBA sets a small business size standard for each NAICS code. The standard may be based on average annual receipts or number of employees, depending on the industry. That means a company can meet the small-business standard under one code and not another.

For a federal contract, use the NAICS code and size standard stated in that solicitation. Check the current SBA size standards because standards can change. Do not assume that your size status for one contract automatically applies to another contract with a different code.

A NAICS code by itself does not make your firm eligible for a small-business set-aside, certification, or award. Read the solicitation's eligibility terms and confirm that you meet the applicable requirements before spending time on a bid.

Use your code to research federal contracts

Once you have likely codes, look at current and past purchasing activity. Federal contract opportunities are posted on SAM.gov under Contract Opportunities. Search by code, but also try keywords and review the work description, agency, location, and eligibility requirements. You can browse open federal bids from SAM.gov and compare activity in federal contract spending by industry.

Past awards can show which agencies buy similar work and what kinds of businesses have performed it. You can use federal facilities maintenance contracts as one example of industry-level contract information. Past awards are not promises of future work, so treat them as research and verify every active requirement in the solicitation.

If you want federal prime contracts, your business must complete a full registration in SAM.gov. Registration is free, and third-party services that charge to register you are not required. State and local governments may have separate vendor-registration rules, so check with the agency issuing the bid.

Frequently asked questions

What NAICS code is janitorial services?

Janitorial services are generally classified under NAICS 561720, Janitorial Services. Read the code description and compare it with the exact work in your bid, since a contract for broader building or facilities management may use a different code.

Do I need to be registered to bid on government contracts?

For a federal prime contract, you need a complete, active SAM.gov registration to bid. SAM registration is free, and it must be renewed every 365 days to stay active. State and local agencies set their own registration requirements.

Can a small business get government contracts?

Yes. Small businesses can compete for open federal contracts and may qualify for contracts set aside for small businesses or eligible certified firms. Check the solicitation's NAICS code, size standard, and eligibility requirements, and consider free help from an APEX Accelerator or SBDC.

How to find my NAICS code?

Describe your main products or services, search the free NAICS code lookup, and compare the full industry definitions with the work you actually perform. If you have multiple business lines, consider whether more than one code describes them, then verify the code in relevant solicitations.

What does NAICS code meaning tell me about my business?

The code identifies the industry that best matches a business activity. It can help agencies and buyers classify your work, but it is not a license, certification, or proof that you qualify as a small business. For a specific federal opportunity, use the solicitation's code and corresponding SBA size standard.