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How to Avoid High Risk NAICS Codes – This is Foolproof!

Reviewed by Ty Crandall

November 15, 2023
Avoid High Risk NAICS Codes Credit Suite

Do you know how to avoid high risk NAICS codes? And build your Fundability™? And what does any of that have to do with how financial institutions view a business? But before we go any further, just what is a NAICS number, anyway?

Higher Risk NAICS Codes

Cash Intensive Businesses

  • Tobacco product and electronic cigarette merchant wholesalers – 424940
  • Shoe retailers – 458210
  • Home centers – 444110
  • Sporting goods retailers – 459110
  • Paint and wallpaper retailers – 444120
  • Hobby, toy, and game retailers – 459120
  • Outdoor power equipment retailers – 444230
  • Sewing, needlework, and piece goods retailers – 459130
  • Nursery, garden center, and farm supply retailers – 444240
  • Musical instrument and supplies retailers – 459140
  • Convenience retailers – 445131
  • Book retailers and news dealers – 459210
  • Vending machine operators – 445132
  • Florists – 459310
  • Beer, wine, and liquor retailers – 445320
  • Office supplies and stationery retailers – 459410
  • Furniture retailers – 449110
  • Gift, novelty, and souvenir retailers – 459420
  • Floor covering retailers – 449121
  • Used merchandise retailers – 459510
  • All other home furnishings retailers – 449129
  • All other miscellaneous retailers – 459999
  • Electronics and appliance retailers – 449210
  • Full-service restaurants – 722511
  • Department stores – 455110
  • Limited-service restaurants – 722513
  • Pharmacies and drug retailers – 456110
  • Cafeterias, grill buffets, and buffets – 722514
  • Gasoline stations with convenience stores – 457110
  • Parking lots and garages – 812930
  • Clothing and clothing accessories retailers – 458110
  • Other grantmaking and giving services – 813219

High Risk Industries (subject to stricter underwriting guidelines):

  • New car dealers – 441110
  • Travel agencies – 561510
  • Used car dealers – 441120
  • Casinos (except casino hotels) – 713210
  • Recreational vehicle dealers – 441210
  • General automotive repair – 811111
  • Boat dealers – 441222
  • Specialized automotive repair – 811114
  • Motorcycle, ATV, and all other motor vehicle dealers – 441227
  • Automotive body, paint, and interior repair and maintenance – 811121
  • Automotive parts and accessories retailers – 441330

MSBs (Money Services Businesses)

  • Consumer lending – 522291
  • Other activities related to credit intermediation – 522390
  • Financial transactions processing, reserve, and clearinghouse activities – 522320
  • Commodity Contracts intermediation – 523160

NBFIs (Non-Bank Financial Institutions)

  • Jewelry, watch, precious stone, and precious metal merchant wholesalers – 423940
  • International, secondary market, and all other nondepository credit intermediation – 522299
  • Jewelry retailers – 458310

NAICS Codes

So the North American Industry Classification System, or NAICS, has its own six digit coding system. This code classifies business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS industry codes define establishments based on the activities in which they are primarily engaged.

For example, if your company makes tires and inner tubes, the NAICS code might be 441320, which is for tire dealers.

But that’s not quite right, now, is it? You’re a manufacturer and not necessarily a dealer. So the NAICS code would start with a string of numerals more like 4420, which is rubber tire manufacturing.

How the NAICS Works

The NAICS sorts businesses for the purpose of gathering, analyzing, and then publishing statistical data related to the United States business economy. The NAICS industry codes thereby define establishments as based on the activities in which they are mainly engaged.company NAICS codes

In our tires example, the NAICS has several codes. They correspond to all sorts of stops that tires make along the way from manufacturing to end user. This includes different types of wholesalers and retailers and the like.

Low Risk NAICS Codes vs. High Risk NAICS Codes

The NAICS puts out its own list of high-risk and high-cash industries. Higher risk industries on the high risk business list include casinos, tobacco wholesalers, and furniture retailers, but also automotive dealers and restaurants.

Do you have a high risk business? Then the industry codes NAICS will reflect that on your business credit report.

OSHA requires injury and illness reports from certain high-risk industries.

Keep in mind, that list of high-risk and high-cash industries is a few years old and potentially incomplete, and there are no plans to update it.

However, the NAICS coding system is not the only coding system out there affecting business credit files. Here’s another which is often used. It’s something to pay attention to, for business credit building purposes.

Business SIC Codes

What is a SIC number? The SIC Code (Standard Industrial Classification) is a part of another business classification system.

A Standard Industry Classification code, or SIC is a four digit numerical code which is assigned by the federal government to businesses, to make it easier to identify the primary activity of the business.

This is an indicator of the kind of business a company is in. The Securities and Exchange Commission developed this system. For example, in our tires case, then your SIC code would be 3011. The numbers are somewhat intelligent in that there are ranges of industry groups which correspond to the first of the four digits, such as manufacturing corresponds to four digit SIC codes that start with either a 2 or a 3.

The combination of the first and second digits then defines the major industry group in small business SIC codes. In our example, 30 designates ‘Rubber and Miscellaneous Plastic Products’.

Digit Groupings

The SIC code’s digits are grouped to identify the industry and its group. The first two digits in the SIC code identify the major group, the third digit identifies the industry group and the fourth digit identifies the industry.

In fact, the Internal Revenue Service will use the SIC code that you select. This is in order to determine if your business tax returns are comparable to the other businesses in your industry. Therefore, if your tax deductions do not reasonably resemble the other businesses in your industry, your business could be audited. 

This means the IRS is looking where to find NAICS code on tax return – your tax return.

Low Risk SIC Codes for Businesses vs. High Risk SIC Codes

Furthermore, some companies may be labeled high-risk when they do not select the right SIC codes to classify their company. However, if you understand how the business classification system works, then you can choose the correct code on your first try.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Which Coding System do the Banks and the Business Credit Reporting Agencies Use?

Business credit bureaus and small business lending institutions use both. However, the SIC code system is phasing out and NAICS codes will replace it. But for the moment, assume they are both in play, as the transition has not yet finished. These coding systems are similar but not identical.

Lenders, banks, insurance companies and business credit reporting agencies use the two business classification systems to see if your business is a high-risk industry classification.

This means that you could get a denial for a loan or a business credit card based on your business classification. Some SIC codes can trigger automatic turn-downs, higher premiums, and reducing credit limits for your business.

You must be careful when you choose NAICS codes for your company. The Internal Revenue Service will use the NAICS code that you select. This is to determine if your business tax returns are comparable to the other businesses in your industry.

Therefore, if your tax deductions do not reasonably resemble the other businesses in your industry, your business could be subject to an audit.

Furthermore, some companies are labeled high-risk when they do not select the right NAICS codes to classify their company. But if you understand how the business classification system works, then you can choose the right code on your first try.

True Injury Risks According to the CDC

In 1999, the Centers for Disease Control published an article on risks in small businesses. This article contains information on SIC codes and gives information on injuries associated with the codes.

While this is not the true means by which lending institutions decide on risk, it is still of interest. And it can show what may be behind some of the reasoning. This could be the answer to what is NAICS code used for.

Part of the calculus of risk comes from occupational injuries such as those noted in the CDC report. But the other side of the risk coin is occupations which are cash intensive businesses.

After all, a pawn shop might not have much of a specific risk of injury at all. But the large amounts of cash normally associated with one mean that it’s a tempting target for thieves.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Avoid High Risk NAICS Codes by Choosing Better NAICS Codes

Let’s go back to our tire example for how to choose the proper NAICS code for your business. The first two digits of the SIC code will identify the major industry group. Then for the business activity code NAICS, the third digit will identify the industry group. And then the fourth digit will identify the industry. This is how these agencies classify businesses.

Now you should learn how to get a NAICS code.

Here’s how to get NAICS code for your company:

  • Go to naics.com
  • Use their search function and their business activity code lookup
  • Select the closest fit – if there is no good fit, search again for other NAICS business codes

You Can Avoid High Risk NAICS Codes

There are certain high risk NAICS codes which will get you a loan denial if you choose them for your business classification. So before you choose your SIC code and NAICS codes, look over the high risk industries list of cash intensive businesses and more. Do so before you begin to build your NAICS codes.

Here are some high-risk industries codes you should be aware of:

  • Automotive sales: new car dealers – 441110; used car dealers – 441120
  • Travel agencies – 561510
  • Real estate investing (this is potentially where the NAICS code for real estate would be – the NAICS code for real estate is 531390 for other activities related to real estate)
  • Finance businesses and money lending and collecting: financial transactions processing, reserve, and clearinghouse activities – 522320; other activities related to credit intermediation – 522390; consumer lending – 522291
  • Jewelry retailers – 458310
  • Restaurants: full-service – 722511; limited-service –  722513
  • Tobacco product and electronic cigarette merchant wholesalers – 424940

Avoid High Risk NAICS Codes: Back to Our Example for a Moment

But what is the NAICS code? For automotive sales, for example, you would normally select 441110, ‘Automobile dealers, new only or new and used’.

However, most lenders will automatically turn your business down because of the high-risk factor within the business classification name. Of course you want to be honest with your NAICS coding classification.

However, if more than one NAICS code could apply, don’t worry. Because there is nothing wrong with choosing company NAICS codes which will not get you denied by lenders.

Therefore, if you want to have your automobile sales company, you need a business code which has something like automotive parts written in the actual business code. That way, you can still operate your real business of “automotive sales” without being considered risky.

You’ll be fine, even as lenders search companies by NAICS code, using an NAICS lookup by company name. A better NAICS code can be the difference between business funding – and no funding.

Information on how you can Discover 7 Easy Vendors to Start Building Business Credit Immediately - without a Personal Credit Check or Guarantee via Credit Suite

Avoid High Risk NAICS Codes: Takeaways

Choosing the incorrect NAICS code could end up costing your business and get you labeled as high-risk. So this could directly impact your insurance premiums, your financing ability, even your credit limit recommendations.

This small error of selecting the incorrect NAICS code could cost your business in the future.

Therefore, be sure to do your research before you select an NAICS code for your business.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the seasoned Finance Writer and a former content manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

  1. This is a good article. I work in the mortgage protection business and insurance carriers are beginning to take the employer’s SIC code of an applicant into consideration when underwriting an insurance policy in addition to other consumer data. I am interested to know what the lowest risk SIC codes are please?

    1. Thank you.

      You are probably not going to like this answer, but the truth is, it depends. The higher risk NAICS and SIC codes out there tend to correlate with industries where either there’s a high chance of injury or the business performs a lot of cash transactions (thereby tempting thieves). Of course any company can be burgled, and any business can be sued. Life is a roll of the dice. But there is an appreciable difference in the risk of injury on a construction site versus in an insurance office.

      An unofficial NAICS list of the highest-risk industries (https://www.naics.com/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf) does overlap with OSHA’s much more official list of industries where an employee must submit an injury and illness summary (https://www.osha.gov/recordkeeping/NAICScodesforelectronicsubmission.pdf). But the overlap isn’t perfect, and some of these industries are being called by different names. In particular, OSHA seems less concerned with businesses engaging in a lot of cash transactions. So take it with a grain of salt. It’s just to give you a rough idea.

      But the gist here is to find industries which the NAICS or SIC *doesn’t* consider to be high cash transaction volume or high risk of injury. Gas stations, for example, are probably always going to be considered high risk because they are often a target for thieves and there are enough chemicals and slippery surfaces around, not to mention humans in close proximity to cars, so there are high risks of injury.

      Then again, even artists have risks of injury (paint fumes, stress injuries from dancing, etc.) but they are *probably* not going to be seen as high risk (https://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=711510&search=2017%20NAICS%20Search).

      If an industry (like pawn shops) keeps coming up as high risk no matter what, then there may not be too much anyone can do about that. I hope this is helpful, at least to an extent. Thank you for your comment.

  2. But does the government reward a minoity company with higher grants if they do a loan for a high risk loan that us a minority?

    1. At times. You’ll need to check individual grant requirements, as they vary widely, and they can also change. Also, go local, and see if your state, city, or town is offering anything, and if they have preferences. You’ll never know unless you ask. Good luck!

  3. All I read or see are examples of High risk sic and naic codes.
    What would be examples of Low risk businesses? and corresponding SIC codes?
    thanks in advance.

    1. Hi!

      This is a great question.

      The main thing you want to be doing is taking away anything that looks high/higher risk, if you can.

      For example: real estate tends to be seen as high risk, kind of no matter what. This is because realtors deal with all sorts of personal dangers, business locales can have trips and falls or snow shoveling problems, and real estate investing itself is volatile.

      Hence if your business is real estate investing, you may want to list it under something more like Business Services, Not Elsewhere Classified (SIC 7389) and All Other Business Support Services (NAICS 561499). I searched for both of those under a general search for ‘business development’, at: https://www.naics.com/code-search/?sictrms=business,development

      Or let’s say you have a political campaign, another high risk industry, because it’s not stable or long-lasting — your candidate either gets in or they don’t, and the campaign (thank heavens) eventually ends. Maybe it can fit under Public Relations Services (SIC 8743) and Public Relations Agencies (541820).

      Of course you want to be honest and you don’t want to be too far fetched. A trucking business shouldn’t be listed under flower shops. The IRS will also take an interest in SIC/NAICS codes that are too wide off the mark, as they (the IRS, that is) use the codes to compare to others in those industries to be sure income, deductions and whatnot are all more or less in line with the norm. Too much deviation and you may find yourself on the business end of an audit.

      I think it would also pay (perhaps quite literally) to consider a wide range of financing options, since even the best SIC/NAICS codes may still get you a denial once a bank figures out what the business truly does.

      I hope that this is helpful. It may pay to expand operations, too. If a real estate investments firm also starts a business association (the Association of Realty Investors, if there is such an organization, or something like it), maybe it could be listed under Business Associations (SIC 8611) and Business Associations (NAICS 813910).

  4. So if I want to start an online accessory boutique how could I operate on a low risk code? Please help ):

    1. Hi and thanks for asking!

      I found a few possibilities (kind of depends on what you’re selling): https://www.naics.com/naics-code-description/?code=448150 is probably your best bet but check if the following two could apply:
      https://www.naics.com/naics-code-description/?code=446120
      https://www.naics.com/naics-code-description/?code=448190

      Then I think you’ll need to do some digging. That is, if your accessories include something like neckties, you can go with one of the codes under https://www.naics.com/naics-code-description/?code=424320 but if your accessories are really just for women, you would probably go with one of the codes under https://www.naics.com/naics-code-description/?code=448150

      I think 448150 is probably closest but keep in mind that the NAICS seems to feel it’s risky (cash intensive business), see: https://www.naics.com/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf. I’m not so sure how old that list is although I am quite sure that it hasn’t been updated in a few years. 448190 also appears on that list.

      But the bottom line is, if your boutique is purely online, you’re not taking cash, by definition. And unfortunately, I’m not seeing any place where there’s any sort of differentiation between online and offline establishments. Of the codes I found above, 446120 isn’t listed as risky, and neither is 424320 – so you may want to see if there’s any way either would apply.

      Best of luck with your business!

    1. Hi, great question!

      I looked car rental up, on then NAICS side, and I found 532111 – Passenger Car Rental.

      I also found 532120 – Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing (in case you ever wanted to expand the business).

      Neither of them are on what is admittedly an old list that is likely to be incomplete: https://www.naics.com/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf

      But I would caution you, even though those particular codes aren’t on that list, the industry *may* still be viewed as being high risk. After all, you’ve got people driving vehicles that are unfamiliar to them. It’s the kind of situation where insurance is a must (by law almost everywhere in the US) and accidents are likely to be common.

      I looked up automotive accessories (441310) but that code *is* listed as being high risk.

      Therefore, for financing, I would highly recommend working directly with a lender which deals directly with car rental companies. Gud Capital is one such place: https://gudcapital.com/car-rental-company-loans/

      I also found this article, which is from 2015 but still seems to be on point: https://www.autorentalnews.com/156225/how-lenders-can-help-rental-fleets

      Best of luck to you with your business!

      1. What a great reply, thanks for the information you provided. I had one other question I'm looking to create a business that offer multiple services including a car rental service and short-term housing. Is there a low-risk code that covers this type of business structure with multiple services across different industry?

  5. I have been searching for a low risk code for Business Consulting and cannot seem to find one. Anu suggestions. The one I am using now is show as high risk 8748/541618

    1. Hmm it may depend on the type of consulting you’re doing, or at least which industry you’re doing it for. Hence, for example, if you were consulting for elementary and secondary schools, you might be able to go under something like 611110 (SIC 8211).

      Hence it may involve a little thinking outside the box, as it were. Best of luck with your business!

  6. Hi there, we just started a property preservation business and the NAICS codes really didn’t pertain to us, so we used real estate and construction. What are your thoughts on this? Is there any way to petition to add a category?

    1. Hi!

      I had never heard of your profession before so thank you for educating me.

      Looking through the NAICS database, it’s possible that 561790 – Other Services to Buildings and Dwellings could apply.
      See: https://www.naics.com/naics-code-description/?code=561790

      I believe there’s a contact link (probably at the bottom of the naics.com site) and I imagine there’s no harm in asking.

  7. Hey Janet, Thanks for providing some insight in the comments. You are super helpful. Would the code 624229 – Other Community Housing Services be considered to be low-risk? My company works with non-profit and government agencies to provide transitional housing. Any advise would be great if this is not the best code.

    1. Hi and thank you 🙂

      I looked 624229 up here: https://www.naics.com/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf and I did not see that code listed.

      However, since that list is a good 7 years old with no update, I hope what I’m telling you is still valid.

      In general, high/higher risk codes have to do with either (a) cash-intensive businesses (like gas stations) and (b) businesses where there’s a high risk of personal injury, either to someone working there or a customer/client (think trucking, or places where you can climb a wall). Of course, some industries can have both (like real estate).

      So now it’s a bit of a question of what your business truly does. That’s particularly interesting when you look at the examples the NAICS gives – there’s “Volunteer housing repair organizations” (which would likely fall under risk of personal injury, since you’re working with hammers and saws, etc.) but there’s also “Energy assistance programs” (which I imagine could be companies that advise on whether your house will benefit from adding solar panels or switching to gas heat – hard to see that one as risky, particularly if most if not all of the work is done either online or by phone).

      So, you can see why I’m about to write to the good folks at the NAICS and ask them to clarify their intentions.

      I hope this is helpful. Sometimes, I hate to say, the answer is: possibly.

      Best of luck with your business.

      ~ Janet

  8. Hi, I’m interested in Reselling, Wholesalers; and starting a jewelry business online and actually want to start a YouTube channel on how to make jewelry etc. I pulled a lot of Naics, Sic codes up and don’t know which ones are high risk or low risk in order to do a startup business and and an online sales and teach how to’s. Which codes would work?

    1. Hi and thank you for asking. The NAICS has an old (as in, it was last updated in 2014) list of high risk codes, and 423940 (Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers) and 448310 (Jewelry Stores) are on there. So I would say that it’s clear that you should not be using either of them.

      Let’s think of what you can use instead.

      The NAICS doesn’t seem to distinguish between online and offline stores (which I think is silly, as online work means no one can trip and fall in a brick and mortar facility, and by definition you can’t take cash — but I digress). I think the channel may be the best way to go, so I came up with: 519130 (Internet Publishing and Broadcasting and Web Search Portals) which they specifically say includes Internet video broadcast sites. And it seems they mean web broadcasting, rather than a video hosting site like YouTube.

      I think that would be the best way to go. Best of luck with your business!

      1. Hi Janet,

        Your insight is very helpful but I got question. I want to resell jewelry and also provide design service. Jewelry store code 448310 is to avoid, then what should I use? Is 541490 design service low risk? And can be used for reselling if I want to keep both service under one code? Please help picking low risk NAICS code for my design service as well as resellling or craft store (prob online or sometimes holiday market..) thank you

  9. Hi Janet!!

    Thanks for all your help!

    I’m in the real estate sector but I’m also a mental health therapist who caters to other healthcare professionals who need short term housing when they’re on month(s) long assignments.
    I wanted to know what low risk NAICS code I should use since what I do is a little more broad and can be either healthcare or business services.
    I’m currently using the SIC code: Real Estate Consultant – 87420406
    And where are all the places I should go to update my NAICS code after I change it?

    Also, I can’t find my NAICS code anywhere, even on the NAICS.com website. The only place I see a code is on dnb.com and it only shows my SIC code. Can you point me in the right direction, thanks so much!

    Sam Warrick M.A.
    Philadelphia, PA
    (215) 525-1982
    [email protected]

    1. Hiya Sam (I lived in KofP about a thousand years ago)!

      I suspect you’ll do best with 621330 Offices of Mental Health Practitioners (except Physicians) (Social workers’, mental health, offices (e.g., centers, clinics). It’s not on the high risk codes list and the code seems to be really on point. There are issues with both real estate (considered to have high risks of personal injury due to slips and falls) and consulting (considered to be high risk due to the low barrier to entry, so lenders feel there are people in those fields who don’t know what they’re doing and are thereby more likely to go bankrupt). I think, from checking the NAICS site, that your code should be 531390 Other Activities Related to Real Estate (Real estate consultants’ (except agents, appraisers) offices). NAICS codes only have 6 digits or fewer, so I wonder if the code you were given was a typo?

      Nothing on the high risk codes list has anything to do with health, so I think it would be all right. But there’s nothing stopping a lender or CRA from deciding mental health = dangerous patients and throwing you into the high risk bucket.

      But all is not lost, because alternative lenders likely won’t care about your NAICS/SIC codes. You can Google business loans for mental health professionals. Another option I found in my travels was SAMHA grants – see – https://www.samhsa.gov/grants-awards-by-state/PA/2021 – but keep in mind that grants are competitive and often not for a lot of $.

      As for where the code is – I believe you can/will need to update it on the D&B website, here: https://www.dnb.com/duns-number.html
      Looks like this is the spot to update it on the Experian website – https://www.businesscreditfacts.com/?link=5502&offercode=expsbbcibutton
      I couldn’t find a specific place to update Equifax, so here’s their customer service contact page: https://www.equifax.com/business/support/

      If your business is on any federal government contracting lists (i.e. if your business is certified as veteran-owned, that sort of thing), or state incentive program lists (often for industries which get state-specific tax incentives), the code should be there as well.

      You may also see it on your IRS records and your insurance records. I found this bit from the IRS on the codes: https://www.irs.gov/pub/irs-soi/17pf_business_codes.pdf But for your insurer, I’m afraid you’re on your own, sorry.

      And finally, lenders would have it/would get it. If they don’t have the right one, I would suggest sending them written documentation of the correct code, like a screenshot of the IRS site page.

      Hope this helps!

  10. Hi Janet,

    Thanks so much for your response to my question 🙂

    Oh wow! Just around 20 minutes from me.. I’m sure if you ever come back, you’ll see how much it expanded!

    Since Mental Health do have a lot of risks especially dealing with clients who come from various levels of trauma and the legal issues that comes with HIPPA, would it be best to choose a NAICS code that covers the entirety of what my services provide rather than picking codes that signifies other activities related to real estate (which any code with real estate is considered high risk) and mental health practitioner codes?

    I was considering using codes such as: Business Services, Not Elsewhere Classified (SIC 7389) and All Other Business Support Services (NAICS 561499). Please let me know your honest thoughts!

    Sam

    1. Hey Sam,

      I imagine that’ll work. 561499 isn’t on the high risk list and it’s vague enough that it wouldn’t be an immediate ‘no’ from a lender.

      Best of luck with your business!

      ~ Janet

      1. Amazing article. Thank you for sharing. I’m looking for a “risk code assessment” on a. ”consulting” business

        Th e business will provide physical security/threat assessment consulting as well as “secret shopper” services and resorts for any other business.

        Thanks in advance !

        1. Hi David, thank you for your comment. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
          1) Search for your business type at https://www.naics.com/search/
          2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
          This is the easiest way to make sure you are properly classifying your business. Hope this helps.

  11. Hi Janet,

    I’m trying to decide what NAICS/SIC to use. I own a duplex where I live in one unit and rent the other unit out (Hired a Property Manger to take care of that). I also make low content books and sell them on Amazon. Any suggestions on a low risk code?

    Happy New Yr!

    1. Hi Dee,here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.If you have more questions feel free to call us at 877-600-2487 for a free consult.

  12. hi, thanks for such an important post and for your help, i have a executive transportation company which falls in limo taxi code, i know that is a high risk code, how can i improve to be able to have better credit options.
    thanks

    1. Hi Cesar, thanks for your comment. It all boils down to having solid Fundability. There are a lot of factors affecting your fundability but one factor you can control is the Foundation of your Fundability. That’s your Biz Entity Name, Biz Address,Biz Phone Number, website and email, getting set-up with Credit Reporting agencies etc. You can download our business credit guide at http://www.creditsuite.com/EIN to get guidance on how to set up your business the right way to maximize business credit & financing. Hope this helps.

  13. Hello, thank you for this article.. if I’m owning, running a hotel .. its apparently high risk.. are there codes that are low risk for this industry? I imagine as a management company?

    Also, how would i know how the irs assigned my naisc code.. and how why i change it??

    1. Thank you for your comment Adianice. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.If you want a free business financing assessment you can call us at 877-600-2487 or schedule it at creditsuite.com/consult

  14. Dispatch service:? Dispatching jobs to 1099 drivers: wouldn’t that be able to run under “employment agency” or something else?

    1. Hi Bernardo, here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. We also have a video how to choose your NAICS code, here’s the link: https://youtu.be/uxDN9Ztt-dw

    1. Hi Bernardo, here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. We also have a video how to choose your NAICS code, here’s the link: https://youtu.be/uxDN9Ztt-dw

  15. This is great information I didn’t know about. I have business that falls under SIC Code: 871200, Architectural Services, NAICS Code: 541310, Architectural Services, NAICS: 541340 – Drafting Services. My question is are these codes considered High Risky, Risky or Low Risky category.

    1. Hi Tim, Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.Hope this helps.

  16. IS Short term rental business (airbnb) considered high risk classification?

    What is the recommended NAICS code for short term Rental business? Thank you.

    1. Thank you for your comment Balazs, we can’t pick NAICS code for business owners as much as we want to simply because business owners know better about their business than we do but we put up a guide on how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business. Hope this helps. 🙂

    1. Hey Sam, thanks for your comment. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  17. Definitely excited about being apart of credit suite business funding and partnership services

    1. Hello, here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  18. Hey, I am trying to do Airbnb. Short-term rental can you help me find the best low risk naics code Airbnb.

    1. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  19. What code would be a low Risk for a special needs pnn medical residential group Home.

    1. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  20. Hello, I already have a home health agency registered and probably chose the code relating to it without knowing whether it would be considered as high risk or not. How do I rectify this so that I can get approval from the banks for loan. Also I’m planning to set up a no. Medical transportation business and wanted a guide as to the right code to choose which wouldn’t be high risk

    1. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  21. I am looking to start an Airbnb business which NAICS code would I use

    1. Thank you for your comment Lasasha. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  22. Hi! Amazing Post!
    I’m opening up an event space business and I’m very anxious about selecting the best/low risk NAICS code for my business for optimal funding. I really want to select something that is low risk but not far off from my business cause I really don’t want to get audited. I’m afraid to pick one that sounds too much like real estate focused. Can you please help me select one that matches an event space/venue that can be for special occasions.
    I’m trying to decide between the following:

    531312 –
    Nonresidential
    Property Managers

    531120 – Lessors of
    Nonresidential
    Buildings (except Miniwarehouses)

    541611 –
    Administrative
    Management and
    General Management
    Consulting Services

    561920 – Convention and Trade Show Organizers

    Would you consider any of there high risk? Can you possibly track these from lowest to Highway risk? Please any advice would be so helpful and greatly appreciated!

    1. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  23. For someone in real estate doing wholesaling and rehabbing homes. What would be the best NAICS code so we can be fundable?

    1. Thank you for your comment. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  24. This was a great article. After looking at my business, I couldn't find a NAISC code fit. I'm a crafter that upcycles wine boxes with resin art and glasses and cheese boards. no real classification for resin art., and the artist didn't seem to fit. I keep getting resin manufacturing but that sounds a little out of range. any suggestion where to look.

    1. Hi Tamara, thank you for your comment. Here is how to check the NAICS codes to make sure your business isn’t being categorized as High Risk or Restricted.
      1) Search for your business type at https://www.naics.com/search/
      2) In a separate tab cross reference the NAICS code with their list of High Risk and Restricted codes at https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf
      This is the easiest way to make sure you are properly classifying your business.

  25. Hi Janet how are you! I'm in the process of starting my online business which will be a boutique selling women ,men and children clothing. Can you tell me if there is a low risk code for this industry. Thanks

    1. Hey Janice! We don’t see restrictions for any business in your industry. That being said you’ll want to make sure you have the rest of your Fundability set up the right way. NAICS code is just 1 of 125 different Fundability Factors™ that lenders and credit issuers look at. We can help with that just give us a call at 877-600-2487.

  26. Hello, we run a smoke shop in behalf of a smoke shop and basically act as consultants. We get paid by the smoke shop and then also sub hire within our own LLC. Is this considered low or high risk? We are basically consultants.

    SIC Code:
    5999 – Retail Stores, Misc, Nec
    5993 – Tobacco Stores & Stands
    NAICS Code:
    453900 – Other Miscellaneous Store Retailers
    459991 – Tobacco, Electronic Cigarette, And Other Smoking Supplies Retailers

  27. Mrs. Siegel: I've established a holding company with the intent to own and operate other property related investment ventures such as fix and flip, abnbs and lease properties. Would you be so kind as to give a suggestion with respect to the most appropriate NAICS code to use with the fiduciary institutions when I am opening business accounts. The code I was figuring on is 551113, however is this a high risk code?

    1. Hi Victor, thanks for reading our blog. As much as we want to pick an NAICS code for you, we can’t. Simply because you know your business better than we do. However, you can cross check your chosen NAICS code from the list of high risk and restricted industries found on the website of NAICS here’s the link: https://r7j8i9x2.rocketcdn.me/wp-content/uploads/2014/10/NAICS-ASSOCIATION-High-Risk-and-Cash-Intensive-NAICS-Codes-List.pdf. If your code is not there, then you have a standard code and should be good to go. Hope this helps.

    1. Hi Anisa, thank you for your comment. If you need help with business financing you can call us at 877-600-2487 for a free finance assessment and we will be happy to check what you can qualify right now.

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