![]() This affects who is eligible for certain small business-related programs and certifications. NAICS codes have many applications, but one of the biggest is the Small Business Administration (SBA) using them to set standards for what is considered a “small” business. Developed by the United States, Mexico, and Canada, the North American Industry Classification System uses a 2-6 digit code to categorize and group businesses. What is a NAICS code?Ī NAICS (pronounced NAKES) code is a standardized way for companies, industries, and economies to be compared and analyzed across North America. Let’s explore what a NAICS code is used for and how to find what yours is today. This means that they all play a role in important processes such as registering with SAM, logging into the government contracting database, and finding your first contract. CAGE, MPIN, PCS, UEI, NAICS, and more all help identify or classify your business. More information can be found at the following links:Īs always, it is recommended that you verify all information with your legal professional.It’s easy to lose track of codes associated with your business when it comes to government contracting and registration. Before moving forward with the registration, view the list of professions that require professional licensure at. When looking through the PDF, if the NAICS code you have selected is bolded it may require a professional license. *NOTE: Business owners should always get their professional license first, before obtaining a business license. Repeat this step if you have more than one LOB. Look up the NAICS code you found in the first step to verify it is applicable in the State of Alaska. Once you have found your NAICS code, compare it to the actual lists of NAICS codes the State of Alaska uses. Make sure you select the correct search box, or you might find the wrong NAICS code. *NOTE: The State of Alaska uses the NAICS codes from 2007. Be careful to select the NAICS code that most closely represents the activity you are looking to do. As an example, looking up “Shirts” brings up a list of several dozen potential NAICS codes including manufacturing of shirts, wholesale, and retail shirt stores. You will want to look through the list of NAICS codes that come up as some keywords may cover several lines of business. Enter the type of business you are doing and choose from the list that comes up. This link will direct you to the US Census Bureau’s NAICS search engine. Now the Chiropractor above can easily list both LOBs on one license. Thankfully, in 2014 the Legislature passed HB 32 amending AS 43.70.020(a) to allow for one license to cover multiple lines of business. Until recently, this meant you would have to buy a second business license. Alaska Statutes require you to have a license for each LOB you operate in. In this example, you would not be covered for both activities because they fall under different LOBs. The NAICS code for Vitamin Stores is 446191. Most likely you would be licensed under your primary activity 621310 (Offices of Chiropractors). For instance, say you have a Chiropractic office that also sells vitamins. If you provide products or services that are quite different, it may be that they would not be covered under the same LOB. Why would I ever get two business licenses? In addition, the current and valid professional license number must be provided. If any business activity requires a professional license, then these activities must be listed as the primary and (if applicable) secondary Alaska NAICS codes on the business license application.In other words, closely related NAICS codes may be under the same LOB, and if so, you may be licensed for both activities with the one license. This is important because while you may be licensed for 451211 (Book Stores) you are technically also licensed for 448219 (Shoe Stores).The full six-digit NAICS code will appear when the license is viewed online. You will be required to choose a full six-digit NAICS code and your printed business license will only show the two-digit line of business (LOB) code. The first two digits, 23, is the Line of Business code for construction. As an example, NAICS code 238140 is for Masonry Contractors. It refers to the first two digits of the NAICS code and designates the category heading for the economic activity that an enterprise is in. (LOB or LOW) stands for Line of Business or Line of Work. The system is a multi-national attempt to classify enterprises by their intended economic activity. (NAICS) stands for the North American Industry Classification System. ![]() Choosing a NAICS Code for Your Small Business
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