When you're filling out the different tax forms as a business owner, the Internal Revenue Service requires that you list a six-digit North American Industry Classification System code that describes the industry for any business you claim on your yearly taxes. The government uses these codes to reduce fraud by comparing your business's income and expenses with similar businesses. Although the list of the NAICS codes do not change often, new IRS business codes are added periodically.
Consider also: Non-Employee Compensation: Definition & Compensation Reporting
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Cleaning and Construction Business Codes
Companies in the cleaning and property services continue to dominate the top home-based franchises and will have a specific business code for taxes.
For example, the IRS says that companies involved in janitorial services would use NAICS code 561720, while pest extermination companies would use 561710. Companies that offer carpet and upholstery cleaning must use 561740 with landscaping service companies using 567130. NAICS codes 233200 applies to residential construction, while 233300 refers to nonresidential construction companies.
Accounting Services Codes
Business owners in the accounting services industry may use different Schedule C business codes.
Tax preparation services should use code 541213, while certified public accountants would use code 541211. Companies that specifically offer payroll services use NAICS code 541214. All other accounting services such as billing offices, day-to-day accounting or bookkeeping services must list 541219 as their industry code classification.
Door-to-Door Direct Sales Codes
Mobile tool sales and delivery companies such as Snap-On Incorporated and Matco Tools should use the NAICS code number 454390 which applies to miscellaneous direct sales companies. Other companies that fall under this classification include bottled water services, frozen food direct sales companies, home party plan companies and newspaper delivery services.
Dance and Fitness Class Codes
Aerobic dance or fitness training businesses must use NAICS code 713900, but if the business includes diet plans and weight loss and other "personal care" services, they are classified under 812190. For colleges, universities or other educational providers, NAICS code 611000 works, if they provide educational training without a specific fitness or weight restriction element. A performing arts company which also provides dance classes should use a different code altogether – NAICS code 711100.
Consider also: What Is a Schedule C Form: Who Needs to File & How to File
Travel and Food Services Codes
Rooming and boarding houses such as frat and sorority houses, residential clubs and workers' camps fall under 731210 with full-service restaurants with eat-in facilities and waitresses and waiters are classified as NAICS code 722110 with fast food services, cafeteria and other carry-out food services list under 722210. Nightclubs, bars and drinking establishments fall under 722410, which may included limited food services. All other hotel, motel and bed and breakfast businesses must use NAICS code 721100.
Gas and Convenience Store Codes
The deciding factor in what code these businesses should use is whether or not they sell fuel. Stores with gas or diesel pumps would report code 447100, while those without gasoline are combined with grocery stores under code number 445100.
Hair Salon IRS Business Codes
While a hair salon would use code 812112, a barbershop has a different code – 812111. Nail salons also have their own designation in the code classifications, 812113.
Real Estate IRS Business Codes
The NAICS used by the IRS recognizes a number of different real estate business classifications. Real estate brokerage businesses, including those of individual agents, should use code 531210, while real estate property management companies fall under NAICS code 531310. Appraisers should file under 531320.
Owners of companies that lease real estate would file code 531100, although they should also consult with a CPA to ensure that they do not need to file additional forms.
Computer Services IRS Business Codes
Individuals who provide Internet hosting services should file their Schedule C with code 518210. Internet websites that are run to publish information would report as NAICS code 519100. On the other hand, systems design consultants should use 541510 and other computer services providers should use the 541990 catch-all code for technical service providers.