The North American Industry Classification System (NAICS) provides 6-digit codes that classify businesses by industry to facilitate the administration of the Internal Revenue Code. A company’s primary business activity refers to its primary income-generating activity. For example, a restaurant that also sells souvenirs would have an NAICS code for a restaurant because the souvenirs are secondary.
For gig workers, independent contractors, and sole proprietors, this code describes the primary business activity that you will enter on Schedule C of your tax return. Read on to learn more information about this important classification.
Where can I find my NAICS code?
Find the NAICS code that most closely matches your business on the NAICS website.
What are popular NAICS codes for gig economy workers?
Here are codes to investigate when determining your classification. Remember that these codes are examples, and you should verify the accuracy of the code that applies to your business on the NAICS website.
- Rideshare driving: 485300
- Courier/delivery services: 492000
- Freelance writing/creative work: 711510
- Photography: 541920
- Graphic design: 541430
- Computer programming: 541511
- Management consulting: 541610
- Landscaping: 561730
- Pet care: 812910
Most tax filing software will allow you to look up your code within the software, but there is a full list in the IRS instructions for Schedule C here.
How to find your NAICS code
- Identify your primary business activity: Start by determining the main product or service that generates income for your business.
- Search the official NAICS directory: Use the U.S. Census Bureau's NAICS search tool to look up keywords related to your primary business activity. The current U.S. system is based on the 2022 NAICS classification, while updates for the 2027 revision are currently being developed.
- Compare potential codes: If your search produces several possibilities, review the descriptions for each one. Look at the activities included and excluded from each industry rather than choosing a code simply because its title sounds close to what you do.
- Choose the code that best matches your actual work: The Census Bureau recommends selecting the classification that most closely describes your establishment's primary activity. Read the complete industry description, including examples and cross-references, before making your selection.
- Keep your information consistent: Once you've identified the appropriate code, use the same classification consistently when it is requested for business registrations, applications, government programs, or other business purposes. Keep in mind that there is no single government agency that assigns or approves NAICS codes for every business. Different agencies may maintain their own classifications based on the information provided to them.
What are NAICS codes used for?
NAICS codes may be used for many purposes. One important use is that the Small Business Administration (SBA) assigns size standards to NAICS codes to help determine whether a business qualifies as “small” for certain SBA federal contracting programs.
Why are NAICS codes important?
Here’s why you may need to know your NAICS code:
- To compete for government purchase contracts or grants (both federal and state)
- To obtain disadvantaged business enterprise (DBE) certification, you need to meet the SBA size standards for your NAICS code, and you obtain certification for your particular code(s) only
- To become SBA certified
- To become a VA-certified veteran-owned small business (VOSB) or a service-disabled veteran-owned small business (SDVOSB)
- To become a woman-owned small business (WOSB)
- Possibly used when applying for commercial loans, to compare your business to similar businesses
To make sure your business meets a lender’s industry code requirement, you’ll need to check with them regarding any ineligible industries before submitting your application. A small mistake could cause a delay or rejection, so double-check your numbers before you press “upload.” You may check the list of industry codes deemed risky by NAICS here.
FAQs
What is a NAICS code for a gig worker?
A NAICS code is a six-digit classification used to identify the primary type of business activity an organization or self-employed person conducts. There isn't one universal NAICS code for gig workers because the appropriate code depends on the actual service or business activity. For example, the 2022 NAICS system classifies taxi and ridesharing services under 485310, while other types of gig work may fall into completely different industry categories.
How do I find my NAICS code as an independent contractor?
Start by identifying the primary business activity that generates your income, and then search the U.S. Census Bureau's NAICS directory for the industry description that most closely matches that activity. Independent contractors may operate across many industries, so the fact that someone is classified as a contractor does not determine their NAICS code. Your primary business activity is the more relevant consideration.
What NAICS code should I use for my gig job?
The appropriate code depends on the specific work you perform rather than the name of the gig platform you use. A rideshare driver, food-delivery driver, freelance graphic designer, online seller, and property host may all have different NAICS codes. When choosing a code, focus on the activity that best describes your primary source of business income and verify the description by comparing it to the current NAICS directory.
What is the NAICS code for Uber, Lyft, or delivery drivers?
For businesses primarily engaged in ridesharing or ride-hailing services, the 2022 NAICS code is 485310, Taxi and Ridesharing Services. However, delivery work may fall into different classifications depending on the nature of the service, so a delivery driver should not automatically use the ridesharing code. The right classification should reflect the primary activity being performed.
Why is a NAICS code important for a small business?
A NAICS code helps identify what type of business you operate and is used in government data, business registrations, and other business-related processes. It may also appear in contexts involving lending, government contracting, insurance, and industry research. For a gig worker who has turned an income-producing activity into an established business, having an appropriate industry classification may help keep business records consistent.
Does my NAICS code affect my taxes or SBA loan eligibility?
A NAICS code does not by itself determine how much tax you owe or guarantee that you qualify for an SBA loan. Your tax obligations depend on factors such as your business structure, income, and expenses, while SBA eligibility depends on the requirements of the applicable program and lender. However, your industry classification may be relevant when determining whether a particular business activity falls within a program's eligibility requirements. Gig income itself generally must be reported, including income from part-time or temporary work, and independent contractors may have self-employment and estimated-tax obligations.
