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SIC Code: A Comprehensive Guide to Its Legal Definition and Uses
Definition & Meaning
A SIC code, or Standard Industrial Classification code, is a four-digit numerical code used to classify businesses based on their primary activities. These codes are published in the Standard Industrial Classification Manual by the Office of Management and Budget. The U.S. government assigns SIC codes to help identify and categorize different types of businesses, facilitating economic analysis and regulatory compliance.
Table of content
Legal Use & context
SIC codes are commonly used in various legal contexts, particularly in business regulations and economic reporting. They play a crucial role in:
Identifying business sectors for government contracts and grants.
Determining eligibility for small business programs, as the Small Business Administration (SBA) uses SIC codes to establish size standards.
Facilitating statistical analysis and economic research.
Users can manage SIC code-related tasks using legal templates available through US Legal Forms, which can help with compliance and reporting requirements.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of SIC codes:
A bakery may be assigned the SIC code 5461, which classifies it as a retail bakery.
A software development company might receive the SIC code 7371, indicating its primary business activity in computer programming.
State-by-state differences
Examples of state differences (not exhaustive):
State
Notes
California
Uses SIC codes for various business licenses and permits.
Texas
Incorporates SIC codes in state tax reporting requirements.
New York
Requires SIC codes for certain business registrations.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
NAICS Code
North American Industry Classification System code.
NAICS codes are more detailed and updated, while SIC codes are older and less specific.
Business License
A permit issued by a government agency to operate a business.
SIC codes are used to classify businesses, while business licenses authorize them to operate.
Common misunderstandings
What to do if this term applies to you
If you need to use a SIC code, follow these steps:
Determine your business's primary activity to find the correct SIC code.
Consult the Standard Industrial Classification Manual or online resources for guidance.
Consider using US Legal Forms to access templates that can help with compliance and reporting.
If your situation is complex, seeking professional legal assistance may be beneficial.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.