If you’re looking to start a business in the computer software industry, one of the most important things you will need to do is identify the correct NAICS code for your company. The North American Industry Classification System (NAICS) is a classification system used by businesses and government agencies to categorize industries based on their primary activities. Each industry is assigned a unique six-digit NAICS code that helps businesses and agencies collect, analyze, and publish statistical data related to that industry.
The NAICS code for computer software is 511210. This code is specifically designated for companies that develop, design, and publish software products for personal computers, mobile devices, and other electronic platforms. This includes companies that produce operating systems, productivity applications, games, security software, and more.
Why is it important to have the correct NAICS code?
Having the correct NAICS code is important for several reasons. First and foremost, it helps businesses accurately identify their competition. If you’re in the computer software industry but are classified under a different NAICS code such as 541511 (Custom Computer Programming Services), your competition will be different than if you were classified under 511210.
Secondly, having the correct NAICS code can help businesses access funding opportunities from government agencies and other organizations. For example, if you’re developing software for military purposes, having the correct NAICS code can help you qualify for funding opportunities specifically designated for defense contractors.
How do I determine my company’s NAICS code?
Determining your company’s NAICS code can be done in several ways. The easiest way is to use the search function on the official NAICS website (www.naics.com). Simply enter keywords related to your business activities and the website will provide you with a list of potential codes.
Another option is to consult with a business attorney or accountant who can help you determine your company’s appropriate classification. These professionals are familiar with the NAICS system and can help you navigate the process of identifying your code.
In conclusion, if you’re starting a business in the computer software industry, it’s important to identify the correct NAICS code for your company. The NAICS code for computer software is 511210, and having this code will help you accurately identify your competition and access funding opportunities that are specific to your industry. Use the resources available to you such as the official NAICS website or a business professional to ensure that you’ve identified the correct code for your business.