How do I find the SIC Code for my company?
How to Find the SIC Code for Your Company
The Standard Industrial Classification (SIC) code is a system used by the U.S. government to classify industries by a four-digit code. Established in 1937, the SIC system was designed to facilitate the collection, analysis, and dissemination of economic data. While the North American Industry Classification System (NAICS) has largely replaced the SIC system for federal statistical purposes, SIC codes are still widely used in the private sector for various purposes, including market research, business analysis, and regulatory compliance.
If you're looking to find the SIC code for your company, this guide will walk you through the process step by step.
1. Understand What a SIC Code Is
Before diving into the process of finding your SIC code, it’s important to understand what it represents. SIC codes categorize businesses based on their primary activities. Each code corresponds to a specific industry or sector. For example:
- 5812: Eating Places (Restaurants)
- 7372: Prepackaged Software (Software Development)
- 5411: Grocery Stores
SIC codes are hierarchical, meaning they start with broad categories and become more specific. The first two digits represent the major industry group, the third digit narrows it down to the industry group, and the fourth digit specifies the specific industry.
2. Determine Your Company’s Primary Activity
To find the correct SIC code, you need to identify your company’s primary business activity. This is the main product or service your company provides. For example:
- If you run a bakery, your primary activity is baking and selling baked goods.
- If you operate a software development company, your primary activity is creating and selling software.
If your company operates in multiple industries, choose the activity that generates the majority of your revenue or is central to your business operations.
3. Use Online SIC Code Lookup Tools
There are several online resources that can help you find the appropriate SIC code for your business. Here are some of the most reliable tools:
a. U.S. Securities and Exchange Commission (SEC) SIC Code List
The SEC maintains a comprehensive list of SIC codes on its website. You can browse the list or use the search function to find codes related to your industry. Visit the SEC’s SIC code page here: SEC SIC Code List.
b. OSHA SIC Manual
The Occupational Safety and Health Administration (OSHA) provides a detailed SIC manual that includes descriptions of each code. This resource is particularly useful if you need to understand the nuances of different industries. Access the OSHA SIC Manual here: OSHA SIC Manual.
c. SIC Code Lookup Websites
Several third-party websites offer SIC code lookup tools. These sites allow you to search for codes by keyword or browse by industry. Some popular options include:
4. Search by Keyword or Industry
Once you’ve identified your primary business activity, use the search function on the SIC code lookup tool of your choice. Enter keywords related to your industry, such as "restaurant," "software," or "construction." The tool will return a list of relevant SIC codes along with their descriptions.
For example:
- Searching for "bakery" might return 5461: Retail Bakeries.
- Searching for "software" might return 7372: Prepackaged Software.
Review the descriptions to ensure the code accurately reflects your business activities.
5. Verify the Code
After identifying a potential SIC code, verify that it aligns with your company’s primary activity. Read the description carefully and consider whether it encompasses the majority of your business operations. If the code doesn’t seem like a perfect fit, try searching for alternative keywords or browsing related codes.
6. Consult Industry Associations or Peers
If you’re still unsure about the correct SIC code, consider reaching out to industry associations or peers in your field. Many industries have trade organizations that can provide guidance on classification. Additionally, you can ask other business owners in your industry which SIC code they use.
7. Check Your Business Registration Documents
If your company is already registered with a government agency, such as the IRS or your state’s business registry, your SIC code may already be listed on your registration documents. Review these documents to see if a SIC code has been assigned to your business.
8. Consider Multiple Codes (If Applicable)
Some businesses operate in multiple industries or offer a range of products and services. In such cases, you may need to use more than one SIC code. For example:
- A company that manufactures and sells furniture might use 2511: Wood Household Furniture for manufacturing and 5712: Furniture Stores for retail sales.
When using multiple codes, prioritize the one that represents your primary activity.
9. Update Your SIC Code as Needed
Your company’s primary activity may change over time due to expansion, diversification, or shifts in the market. If this happens, revisit your SIC code to ensure it still accurately reflects your business. Updating your SIC code can help maintain accurate records and ensure compliance with regulatory requirements.
10. Understand the Limitations of SIC Codes
While SIC codes are useful, they have some limitations:
- They may not account for emerging industries or new business models.
- They can be too broad or too narrow for certain businesses.
- They are less commonly used for federal statistical purposes compared to NAICS codes.
If you find that the SIC system doesn’t adequately describe your business, consider using the NAICS code system, which is more up-to-date and widely used.
11. Use SIC Codes for Their Intended Purposes
Once you’ve identified your SIC code, you can use it for various purposes, including:
- Market Research: Analyze industry trends and competitors.
- Regulatory Compliance: Meet reporting requirements for government agencies.
- Business Planning: Identify opportunities and risks within your industry.
- Financial Analysis: Compare your company’s performance to industry benchmarks.
Conclusion
Finding the SIC code for your company is a straightforward process that involves identifying your primary business activity and using online tools or resources to locate the appropriate code. While the SIC system has been largely replaced by NAICS for federal purposes, it remains a valuable tool for private-sector applications. By accurately classifying your business, you can enhance your market research, improve regulatory compliance, and gain valuable insights into your industry.
If you’re still unsure about your SIC code, don’t hesitate to consult industry experts or use multiple resources to cross-check your findings. With the right code in hand, you’ll be better equipped to navigate the complexities of your industry and achieve your business goals.