Why do you Need a NAICS Code?

A NAICS code is required for various purposes, including:

  1. Government reporting: NAICS codes are used by government agencies to collect and publish statistics about various industries, including economic and employment data.
  2. Contracting: Many government agencies and private sector businesses use NAICS codes to identify potential suppliers and contractors for goods and services.
  3. Taxation: NAICS codes may be used by tax authorities to determine the tax classification of a business and the tax obligations it has.
  4. Research and analysis: NAICS codes are used by researchers and analysts to study and compare different industries and make informed business decisions.

In short, a NAICS code provides a common language and standard for organizing and grouping businesses into similar industries, which is helpful for various data collection, analysis, and reporting purposes.