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A business SIC code is a four-digit number in a system for categorizing businesses by industry based on their primary economic activity. Financial and regulatory institutions use both this system and the newer NAICS codes.
Being able to identify your business classification is necessary when you apply for a business loan, open a commercial bank account, or register with business credit bureaus. According to the Occupational Safety and Health Administration (OSHA), financial underwriters, private lenders, and safety compliance agencies rely on these numbers to verify a company’s day-to-day operations and physical risk profile. Misclassifying your primary business activities can result in inflated insurance premiums and commercial credit rejections when setting up business accounts.
Learn what a business SIC code is, how the Standard Industrial Classification system functions, how it compares to the NAICS system, and how to find the industry code that fits your primary business activities.
What is an SIC code?
The Standard Industrial Classification (SIC) system is a structure the US government developed in 1937 to classify companies by their primary business activities. The system standardizes the way government agencies analyze data across different sectors of the economy. By assigning a uniform code to each business, the government can track, analyze, and report on economic activity with consistent accuracy.
A company’s SIC code is a four-digit number that corresponds to a specific industry group. The structure breaks down broad economic sectors by specific business operations, using each digit to narrow the focus:
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First two digits. These identify the major industry group, such as agriculture, manufacturing, or retail trade.
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Third digit. This identifies the more specific industry group within that major division.
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Fourth digit. This identifies the specific industry itself.
For example, within the manufacturing division, a company’s first two digits might point to food products, the third digit narrows the scope to bakery products, and the fourth digit identifies the product line, such as bread, cakes, or cookies.
Similarly, under the finance, insurance, and real estate division, the digits differentiate real estate operators from those managing apartment buildings or nonresidential buildings.
Under the technology sector, the digits separate companies manufacturing electronic computers from those providing commercial machinery or IT services.
Although the federal government stopped updating the SIC system in 1987, the codes remain widely used in some contexts. Commercial banks and business credit providers may rely on these codes to evaluate business risk and assess company profiles. Government agencies like the Securities and Exchange Commission (SEC) still use the classification list to organize public company filings, while OSHA uses it to assess workplace safety compliance standards.
SIC code vs. NAICS code
The North American Industry Classification System (NAICS) is the replacement for the older SIC system. Developed in 1997 through a collaborative effort by the statistical agencies of Canada, Mexico, and the US, NAICS offers a more accurate way to classify companies across North American countries. The older SIC system focused heavily on manufacturing and traditional goods production, while the NAICS system accounts for the growth in services, technology, and information-based industries.
While a business SIC code uses a four-digit format divided into 10 broad divisions, a NAICS code uses a six-digit format divided into 20 sectors. This extra depth lets the NAICS system recognize specialized businesses that don’t fit into the older categories. For instance, an ecommerce retailer or digital software provider has a dedicated category in the NAICS database, whereas the older system forces those same business activities into broader, less-accurate categories.
The two systems also differ in how they group business activities. The SIC system groups businesses based on either their end product or their customer base. In contrast, the NAICS system groups companies based on their production process—meaning businesses that use similar raw materials, machinery, and labor processes share the same classification.
The US Census Bureau manages and updates the official NAICS registry every five years to keep pace with economic changes, while the older SIC system is no longer updated by any federal organization. Despite this, many legacy databases, business insurance providers, and credit bureaus require business owners to know both their SIC and NAICS codes to complete standard applications.
How to find your business SIC code
- Identify your primary source of revenue
- Use keyword searches on official government databases
- Cross-reference with the official NAICS registry
- Check public financial registries for competitor examples
- Consult business credit bureaus and insurance resources
To find the industry classification code that fits your company, follow these steps to navigate the available public and private databases.
1. Identify your primary source of revenue
Before searching any database, determine your primary economic activity based on your largest source of revenue. If your company mainly manufactures bakery products but also offers limited delivery services, your classification rests on the manufacturing side, not the transportation side.
Look at your gross sales from the past 12 months. Focus on the core line of business that generates the majority of your income, as government agencies and lenders look at this primary activity to classify companies. If your business is new, base this decision on your projected revenue streams for your first year of operations.
2. Use keyword searches on official government databases
The US Department of Labor maintains a public Standard Industrial Classification search tool through the OSHA website. To use this resource effectively, avoid typing long descriptions or sentences into the search field. Instead, use single, broad nouns that describe your core product or service—such as “apparel,” “software,” “consulting,” or “retail.”
If a direct keyword search yields too many results, browse the division list manually. Start by selecting one of the 10 broad divisions (like Division G for Retail Trade), then click through the two-digit major groups until you find the exact four-digit code that matches your daily business activities.
3. Cross-reference with the official NAICS registry
Because the older SIC system is no longer updated, finding your code can sometimes be faster if you look up your NAICS code first. Visit the official NAICS website hosted by the US Census Bureau and use the search bar to identify your six-digit NAICS classification.
Once you have that number, use the site’s NAICS to SIC Crosswalk tool, which maps NAICS classifications back to their corresponding legacy codes, allowing you to find the right four-digit number even if your industry didn’t exist in 1987.
4. Check public financial registries for competitor examples
If your business is similar to a publicly traded company, you can find the correct classification code by searching the SEC Edgar database. Public filings display the assigned industry code on the company’s profile page next to their official business addresses and phone numbers. The SEC uses a slightly modified, consolidated version of these codes.
Type the name of a large, established competitor into the system. Reviewing how these established companies are classified helps verify that you have identified a code that aligns with your industry’s standards and regulatory expectations.
5. Consult business credit bureaus and insurance resources
Business credit bureaus like Dun & Bradstreet maintain corporate databases that assign codes to millions of private companies. When you apply for a DUNS number, the bureau assigns a classification based on your business description. You can check your existing business credit reports to view your assigned code.
If you can’t find a clear match online, ask your commercial insurance broker to check their underwriting database. Insurance providers use these classifications daily to calculate business risk, and they can confirm which code fits your risk profile to ensure you get accurate premium quotes.
Business SIC code FAQ
Where are business SIC codes located?
Business SIC codes are located in public and private databases rather than on official state business registration certificates. You can find them through an online search portal on the website of the US Department of Labor’s Occupational Safety and Health Administration, within SEC company filing headers, or inside business credit reports from bureaus like Dun & Bradstreet. Many commercial business-to-business marketing databases and corporate registries also list these codes with company phone numbers and addresses for market research and analysis.
What is the difference between SIC and NAICS?
The differences between SIC codes and NAICS codes are their length, age, and classification logic. A business SIC code is a four-digit code created in the 1930s for a system that groups businesses by their core product or market sector. A NAICS code is a six-digit code created in 1997 for a system that groups businesses across North America based on their production processes. The NAICS system receives regular updates every five years, while the older system is no longer updated by federal agencies.
Do I need an SIC code to start a business?
You don’t need an SIC code to start or legally register a business with your state. Local governments don’t require you to input this code in your articles of organization. However, you may need to select an industry classification code later when you open a business bank account, apply for commercial lines of credit, or buy businessinsurance policies.
