The NAICS Code For Transportation

August 9, 2023

The naics code for transportation is important because it determines how lenders view your business. The wrong NAICS code can lead to a high risk label and may cause you to get turned down for credit. In addition, it can also have other repercussions like a higher premium for commercial insurance and OSHA requirements. It is best to choose a lower risk industry code and naics codes that do not put your company at a high cash or credit risk.

Choosing the right naics code for transportation will depend on the type of trucking you do. For example, if you manufacture rubber tires, the proper naics code would be 4420, which covers manufacturers of tires and tubes. The first two digits of the code identify the major group, and the third identifies the industry group. Those groups are further broken down by the fourth digit to identify the specific industry within that group.

This naics code for transportation includes establishments primarily engaged in providing local general freight trucking and local specialized freight trucking. The former encompasses trucking between metropolitan areas that may cross North American country borders, while the latter consists of specialized trucking such as boat hauling and gravel sand trucking. The long-haul trucking industry falls into a different final naics level category.

Insurance companies use naics codes to analyze businesses and rate them for coverage. The correct classification is critical because it affects premiums, loss control and other analytical processes. Incorrect classifications can cost your business a lot of money in terms of premiums and could result in a loan denial. In addition, the Internal Revenue Service uses naics codes to ensure that your tax deductions accurately reflect how much you actually make in a particular industry.


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