![]() ![]() Reserved for jewelry sellers that sell retail only at art shows or by appointment only NAICS codes for soap making / handmade soap If you are a jewelry maker, however you sell mainly at Jewelry Trade Shows, this is an option for you.Īnother option for jewelry stores is 448310, which is typically for businesses that sell via art shows. Use this code if you mainly make your jewelry itemsĤ23940 : Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers The first code is for businesses that mainly make jewelry items, while the second code is for businesses that make items mainly for the purposes of trade shows.ģ39910 : Jewelry and Silverware Manufacturing. There are several codes to choose from, but the two most relevant are 339940. There are a couple of NAICS codes to choose from if you are a jewelry manufacturer. NAICS codes for jewelery makers / jewelers Tip: Ensure that you are registered consistently with your state to avoid any issues with your selected code - the code you choose here may be subject to additional legislation or requirements so it’s best to double-check this with your state authority before lodging your Schedule C return.Īlso, don’t use the 999999 code if you are feeling overwhelmed with the choices and just want to make a decision - this indicates to the IRS that you may need further investigation to find out what your true industry is (and trust me, you don’t want any additional attention from the IRS!).Īs with all taxation advice, this information should be used as a guide - it is recommended that you seek the advice of a taxation specialist in your own state to confirm that your selected code is the best one to use for your circumstances. This means for starters, you can assume that your NAICS code will probably fall within the Manufacturing 31-33 code range. The first two digits of a company’s code indicate its major industry group, while the second two digits further specify the company’s business within that industry group. NAICS codes for craftersĪs a handmade crafter, you can be classed as a manufacturer as you take raw materials and transform them using a process into goods for sale - many handmade sellers don’t tend to think of themselves this way and often choose a general retail category for their business.Īlthough your business may be classed in some cases under a retail category, it may be in your better interests to choose a manufacturing category instead: the IRS will compare your return to others in your own industry and will also assume that you will most likely have significant inventory costs (this is good as you can then claim your material costs as COGS).Įach NAICS company group is assigned a four-digit code. Together, these codes can be used to get a more complete picture of a business. ![]() The BAC provides information about the specific activity of a business, while the NAICS code provides information about the broader industry in which the business operates. However, the two codes are often used together to provide more information about a business. Your BAC is not necessarily the same as your NAICS code. The North American Industry Classification System (NAICS) is a six-digit code system that is used to classify businesses by their industry. What is a Business Activity Code?Ī business activity code (BAC) is a five-digit code that classifies businesses according to their primary activities. Tip: Some state governments will offer tax incentives to businesses from different NAICS industries, so it’s a good idea to find the right code for your business so you don’t miss out on any incentives are available. NAICS codes are updated every 5 years in order to reflect changes in business and industry, so it’s best to keep checking to make sure that your selected code is the best representation of your business. This means the government can use this code to put you in a bucket with other craft handmade sellers that make similar items to you and compare your revenue and expenses to make sure that they fall within a certain range. As it is a standard, it can be used across different departments to collect, record and analyse economic data. Essentially, NAICS (rhymes with “snakes”) stands for the North American Industry Classification System and is a 6 digit code used by business and government agencies to classify businesses in terms of their economic activity. Let’s start with explaining what a NAICS is. We outline some of the most common NAICS codes for your craft business so you can choose this code with confidence. ![]() For handmade sellers needing to complete a Schedule C form or register for sales tax, choosing a code for your Principal Business or Professional Activity (NAICS) can be confusing! ![]()
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