# Understanding SIC Codes: Who Needs Them & Finding Yours

![SIC Code: Four-digit numerical codes that categorize U.S. companies by their primary business activity.](https://www.investopedia.com/thmb/dedenlvtWVSIuC1Ux5Vm6-z5mZI=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/sic_code-final-6efe1ff1c2a543788765d22b2ce9b5fc.png)

*— Investopedia / Zoe Hansen*

> **Definition**
>
> Four-digit numerical Standard Industrial Classification (SIC) codes are used to categorize U.S. companies by industry based on their business activities.

## What Is a SIC Code?

Standard Industrial Classification (SIC) codes are four-digit numerical codes created by the U.S. government to classify business industries. Companies are required to use them in certain government filings, and they help in analyzing economic activities.

SIC codes were created by the U.S. government in 1937 to help classify and analyze economic activity across various industries and government agencies. Businesses and government entities use them for various applications. They play an important role for businesses in marketing, taxation, and understanding competition.

The NAICS system has largely replaced SIC codes, but some entities still rely on them. The United States Department of Labor maintains an [online database](https://www.osha.gov/data/sic-search) that can be used to identify the right SIC code for a business.

### Key Takeaways

*   SIC codes are four-digit numerical identifiers used to categorize U.S. companies by their primary business activities.
*   SIC codes, though largely replaced by NAICS codes, are still used by many U.S. government agencies.
*   The first two digits of a SIC code represent the major industry group; the following digits further specify the industry.
*   Companies use SIC codes for identifying customers, competitors, and industry classifications for tax and marketing purposes.
*   The SEC uses SIC codes to assign responsibility for the review of company filings and to indicate industry classifications.

## Comparing SIC Codes and NAICS Codes

SIC codes were meant to be replaced by the six-digit [NAICS codes](https://www.investopedia.com/terms/n/naics.asp) in 1997. The NAICS codes were adopted in part to standardize industry data collection and analysis between Canada, the United States, and Mexico, which had entered into the North American Free Trade Agreement.

Nevertheless, many government agencies, including the Securities & Exchange Commission, continue to use SIC codes. This requires most companies, especially public ones, to use both systems.

The SIC system is still the most widely used industry classification. The NAICS system hasn't fully replaced SIC codes because of their long history and users' reluctance to switch. The U.S. government stopped updating SIC codes in 1987, but private organizations have since continued the updates, adding specific classifications.

As a result, at the most defined levels, there are now more than 10,000 six-digit SIC codes, compared with 1,066 NAICS codes. U.S. companies now have both a SIC code and a NAICS code.  

## Breaking Down SIC Codes: Key Components

The SIC system classifies the economy into 11 major divisions:

*   Agriculture, forestry, and fishing
*   Mining
*   Construction
*   Manufacturing
*   Transportation and public utilities
*   Wholesale trade
*   Retail trade
*   Finance, insurance, real estate
*   Services
*   Public administration
*   Nonclassifiable establishments

They are divided into 83 two-digit groups, then into 416 three-digit groups, and finally over 1,000 four-digit industries.

Every company has a primary SIC code that indicates its main line of business. The first two digits of the SIC code identify the major industry group, the third digit identifies the industry group, and the fourth digit identifies the specific industry.

The [Securities and Exchange Commission](https://www.investopedia.com/terms/s/sec.asp) (SEC) uses SIC codes. The SIC codes are listed in a company's electronic data gathering, analysis, and retrieval system filings (called EDGAR) to indicate the company's industry.  

## Practical Applications of SIC Codes for Businesses and Government

Businesses and the government use SIC codes in a number of ways.

### Businesses

*   Companies use SIC codes to identify their existing customers and potential customers by industry.
*   SIC codes can be used to classify companies for tax purposes.
*   Banks and creditors use SIC codes to identify the industry a company belongs to when they consider credit applications. 
*   SIC codes are used by professionals and businesses to create targeted marketing campaigns.
*   Companies identify competitors in their industry or region by searching for like companies via SIC codes.
*   Businesses use SIC codes to identify government contracts.

### Government

*   The government uses SIC codes to organize and standardize key economic data for various federal and state agencies as well as private companies.
*   SIC codes make it easier to compare data across disparate government agencies.
*   SIC codes are used for tax classification.
*   The SEC uses SIC codes when sorting company filings.

## Locating Your SIC Code: A Step-by-Step Guide

There are many different ways to find the most appropriate SIC code for your company.

*   The United States Department of Labor maintains an online system search tool to search SIC codes by keywords.
*   If you know your NAICS code, there are online resources to identify corresponding SIC codes.
*   The Security and Exchange Commission publishes the full list in a PDF.

The U.S. Department of Labor's tool is very easy to use following these steps:

1.  Use the United States Department of Labor's online system to search for SIC codes by keywords.
2.  If you have a NAICS code, utilize online resources to find the corresponding SIC codes.
3.  Refer to the Securities and Exchange Commission's published standard code list in PDF format.

## Deciphering SIC Codes: Understanding Each Digit

Each digit in a SIC code has a meaning. To read a SIC code, each set of digits should be independently evaluated to determine the overall meaning of the code.  

### The First Two Digits

The first two numbers of a SIC code identify the business's major sector. Though the number of major groups fluctuates, there are typically fewer than 100 in all. These major groups all fit into one of the 11 major divisions, and these first two digits define what industry the company is in.

### The Third Digit

The third digit further refines the business classification and is often referred to as the business industry group. For example, if code 23xx refers to [apparel companies](https://www.investopedia.com/apparel-and-accessories-stocks-looking-the-part-4685460):

*   232x identifies men's and boy's furnishings.
*   233x identifies women's and misses' furnishings.

### The Fourth Digit

The last digit of a SIC code is the most specific identifier of a company. Factoring in this last digit, there are now more than 1,000 possible combinations.

For example, SIC code 2050 (emphasis on the final digit) represents bakery products, while SIC code 2052 represents cookie & cracker manufacturers.

This fourth digit further refines the business classification into a very specific business category.

## Real-World SIC Code Examples in Action

Apple Inc.'s SEC filings show its SIC code as 3571 (electronic computers). The first two digits—35—identify its major industry group as "Industrial and Commercial Machinery and Computer Equipment," while the third digit—7—narrows its industry group down to "Computer and Office Equipment" and the final digit—1—classifies it as "electronic computers."

Note that if the first two digits are between 20 and 39, these companies are classified in the manufacturing division or segment of the economy.

### Banking Industry Examples of SIC Codes

Below is an image of the Standard Industrial Codes, along with their meaning, for the banking industry (taken from the SEC's website).

*   Bank of America Corporation ([BAC](https://www.investopedia.com/markets/quote?tvwidgetsymbol=BAC)), for example, would have the SIC code of 6021 because it's a national commercial bank.
*   State banks would have the SIC code of 6022.
*   Life insurance companies would be classified as 6311.

![Standard Industrial Classification (SIC) codes from the Securities and Exchange Commission](https://www.investopedia.com/thmb/r9KT283pFcjyRr-azZb49TJQQ6c=/952x0/filters:no_upscale():max_bytes(150000):strip_icc()/SICSEC-ada7ddf4adb94f649f1df747740ae21e.jpg)

*Examples of Standard Industrial Classification (SIC) codes from the Securities and Exchange Commission.*

## How Do I Find My Company's SIC Code?

The United States Securities and Exchange Commission issues a standard code list that can be used to identify the appropriate SIC code for a company. The code list is reviewed and updated by the Division of Corporation Finance.

## Who Needs a SIC Code?

All companies have a SIC code, though some may not know it. That is, their business can be categorized by one of the more than 1,000 SIC codes that are in existence.

Every public company has a SIC code and uses it when filing certain reports to government agencies including the Securities & Exchange Commission. The SEC uses the company's SIC code to assign review responsibility for required company filings.

## What Is an Example of a SIC Code?

SIC code 6500 represents the entire real estate industry. SIC code 6510 identifies real estate operators. SIC code 6512 further refines the classification to nonresidential buildings, while 6513 further refines the classification to operators of apartment buildings.

## What Does SIC Code Stand for?

SIC code stands for standard industrial classification (SIC) code. This four-digit number is a shorthand descriptor of the type of business a company is engaged in.

## The Bottom Line

SIC codes are four-digit numerical classifications used to categorize U.S. companies by their primary business activity. They were introduced in 1937 for classifying and analyzing economic activity, and they continue to be relevant despite being replaced in part by NAICS codes. Many government agencies, including the SEC, still use SIC codes, making it necessary for companies to be familiar with them.

You can find a company's SIC code by referring to the U.S. Department of Labor’s online databases and the SEC’s code list.

> **Article Sources**
>
> 1.  Office of Statistical Standards. "[History of the Standard Industrial Classification](https://www.census.gov/history/pdf/sichistory1957.pdf)," Page 1.
>     
> 2.  Census Bureau. "[North American Industry Classification System](https://www.census.gov/eos/www/naics/reference_files_tools/1997/1997.html)."
>     
> 3.  U.S. Securities and Exchange Commission. "[Division of Corporation Finance: Standard Industrial Classification (SIC) Code List](https://www.sec.gov/info/edgar/siccodes.htm)."
>     
> 4.  United States Department of Labor. "[Standard Industrial Classification (SIC) System Search](https://www.osha.gov/data/sic-search)."
>     
> 5.  NAICS Association. "[NAICS & SIC Crosswalks](https://www.naics.com/naics-to-sic-sic-to-naics-crosswalks/)."