The NAICS is an abbreviation for the North American Industry Classification System. The system was originally developed in the 1970s and is used by the U.S. government to classify businesses and their activities. Many large companies have their own dedicated account managers who are responsible for handling all of the accounting details for subsidiaries and divisions within the company. The job of these account managers is to ensure that all of the businesses and legal structures within the company and its subsidiaries adhere to the correct codes as assigned by the NAICS. Errors in classification can result in major headaches for the companies as well as the government agencies that monitor and enforce the rules and regulations defined by the NAICS.
If you’re looking to get your NAICS code for free, there are several ways to do so. You can get the code directly from the government agency or business that issued it, or you can go through a third party provider who acts as an agent for the government. We will discuss the various ways that you can get your NAICS code and what fees or charges may apply.
Obtaining Your NAICS Code From The Government Agency That Issued It
One of the simplest ways to get your NAICS code is to contact the government agency that issued it. The Manufacturing and Trades Classification Branch of the U.S. Department of Commerce produces the codes and maintains an online database containing all current and historical codes. This database is searchable by key words and business names, and you can download the data in an Excel format for easy manipulation.
The only fee that you may have to pay is for the cost of the report that you requested. As mentioned, the government agency that issues the codes provides free access to its searchable database of industry classification information. The database is updated annually and is reviewed for accuracy and compliance with the NAICS rules and regulations on a regular basis. The cost of a standard code is $1,000 and can take several weeks to years to receive.
Obtaining Your NAICS Code From A Third Party Agent
If you don’t want to or can’t obtain your NAICS code from the government agency that issues it, you have the option of getting it from an outside agency. Third party providers specialize in providing services to businesses and individuals in regards to obtaining classification and licensing information. Some of these services are free, while others will require a fee.
One of the more popular third party agency services that provide NAICS codes is NAICS Incorporated. This is a for-profit company founded in 1970 that specializes in providing services to businesses and organizations regarding classification and licensing. While their services are generally affordable, the cost of an NAICS code can vary widely based on the complexity of the code required and the type of license or classification that you need.
NAICS Incorporated offers a variety of services, including free online case management, which we discussed in the next section.
Online Case Management
NAICS Incorporated offers an online case management system, which they call NAICS Advantage. This online system allows companies to manage their entire industry classification requirements through a single, searchable platform. All of the information, including the NAICS code, is maintained by the company and accessible from anywhere within the organization through a secure connection.
A company that uses NAICS Advantage for classification purposes must register with the system and select a username and password. After registering, companies can log in to the system and enter the detailed information required for their particular classification. The system then generates a unique 10-character alphanumeric code, which the company must maintain throughout its lifetime as evidence that it has been classified legitimately. In addition to the unique code, the system also keeps a record of all company actions in an easily accessible and searchable format through the use of electronic journal entries. Electronic journal entries are simply entries that are made in real-time in an electronic database regarding specific actions taken by the business.
Companies that use this service need to make sure that all of their employees, shareholders, and business partners are aware that this is an official government document and that strict confidentiality must be maintained when discussing or presenting this document to anyone.
Fees For Using Third Party Agents For NAICS Classifications
If you decide to go through a third party provider for the service of getting your NAICS code, you may have to pay a fee for their services. The way that these fees work is that they are typically broken down into three major categories: 1) a classification agency fee, 2) an expedited processing fee, and 3) a fee for obtaining a permit or license. The permit and license fees are generally charged at the state level and can vary widely based on what type of license or classification you need. For example, if you are doing business within a particular trade or industry, you may have to pay a fee for a special license, while other businesses within the same trade or industry may not have to pay any fees at all.
The expedited processing fee is charged by the third party provider, and it varies based on the type of license or classification that you need. If you want your business to be classified under the federal government’s E-number system, which is equivalent to a NAICS code, you will have to pay an expedited processing fee ranging from $500 to $3,000. This fee is in addition to the classification agency fee, which ranges from $600 to $2,400, depending on the type of license or classification that you need.
Getting your NAICS code is an essential part of doing business in the United States. Without it, you can’t operate legitimately under any of the various classifications or licenses that are available. You also need to remember to maintain the code at all times, which is not an easy task, especially if you’re using a third party to assist you in this effort. Finally, be sure to get all of the required paperwork done so that you can operate legally within your industry or business.