SIC Codes: What They Are, Who Needs Them, and How To Find Yours

An in-depth guide to Standard Industrial Classification (SIC) codes, including their purpose, who needs them, and how to locate your specific SIC code.

Standard Industrial Classification (SIC) codes are four-digit numerical codes used to classify businesses based on their primary business activities. These codes play a crucial role in identifying and comparing business activities across various sectors.

Origin and Purpose

The SIC system was established in the 1930s as a means to uniformly categorize and analyze business activities. It has since become a fundamental tool used by government agencies, economists, and business analysts for statistical purposes.

How SIC Codes Function

Who Needs SIC Codes

Finding Your SIC Code

Methods to Identify SIC Codes

There are multiple methods to determine your SIC code:

• Online Databases: Numerous databases provide search functions for SIC codes based on descriptions of business activities.
• Government Resources: Agencies like the U.S. Census Bureau offer comprehensive lists and search tools for SIC codes.
• Industry Classification Guides: Many industry-specific guides and directories categorize businesses with their appropriate SIC codes.

Special Considerations

When determining the correct SIC code, it is essential to accurately reflect the principal business activity to ensure compliance and proper statistical representation.

Examples of SIC Codes

• 7812: Motion Picture & Video Tape Production
• 5122: Drugs, Drug Proprietaries, and Druggists’ Sundries

Historical Context of SIC Codes

Developed in the 1930s, SIC codes have undergone significant revisions to adapt to the evolving business landscape. While they have been largely replaced by the North American Industry Classification System (NAICS) for some purposes, SIC codes remain relevant in various sectors.

Applicability and Uses

SIC codes are used in:

• Regulatory Compliance: Ensuring businesses are complying with industry-specific regulations.
• Market Research: Helping businesses and researchers analyze market trends and industry performance.
• Economic Analysis: Facilitating economic data collection and analysis by government entities.

SIC Codes vs. NAICS Codes

While SIC codes remain widely used, the NAICS system offers a more detailed classification scheme for modern industries. Businesses should be aware of both coding systems, as certain regulatory and reporting requirements may specify the use of one over the other.

Related Terms

• NAICS Codes: The North American Industry Classification System codes are six-digit codes that provide a more detailed and updated classification scheme compared to SIC codes.

FAQs

What is a SIC code?

A SIC code is a four-digit numerical code assigned to businesses to classify their primary business activity.

Who assigns SIC codes?

SIC codes are assigned by government statistical agencies and used by various private and public entities for classification purposes.

Are SIC codes still in use?

Yes, while NAICS codes have largely supplanted SIC codes, they are still used for specific purposes like historical data analysis and certain regulatory compliance.

References

1. U.S. Department of Labor, Occupational Safety and Health Administration (OSHA). “Standard Industrial Classification (SIC) System Search.” Accessed January 15, 2024.
2. U.S. Census Bureau. “North American Industry Classification System.” Accessed January 15, 2024.

Summary

Standard Industrial Classification (SIC) codes are essential for the classification and analysis of businesses based on their primary activities. Despite the introduction of the updated NAICS system, SIC codes hold significant relevance in regulatory compliance, economic analysis, and market research. Understanding their purpose, applicability, and methods for finding your specific SIC code is crucial for accurate business identification and compliance.