IRS Form 1040 (Appendix C) requires sole proprietors to choose an activity code for their arts and crafts business income. These codes are based on the North American Industry Classification System (NAICS). Business owners who submit Schedule C must choose the activity code that best describes the source of their income. If the nature of your business has changed from year to year – for example, if you`ve shifted your focus from clothing to jewelry – it`s perfectly acceptable to use a new activity code that better describes your work. When filing your taxes, choose the code that best describes the primary purpose of your small business. The IRS suggests looking at your primary business activity first. If it is a fabrication, look at the manufacturing codes. If it`s retail, look at the retail codes. If you`re still not sure which code to choose, think about the activity that drives the majority of your sales or revenue. If you make and sell a few different items, which one produces the most sales? Learn more about NAICS 238320 in the construction sector and related general liability, ICCN and CIS codes. For a complete list of activity codes for Schedule C and other tax returns, see the IRS instructions for Appendix C. These instructions are updated annually. Some of the most common codes for small arts and crafts business owners are: If you use tax preparation software like TurboTax, it can guide you through a series of questions that will help you determine how to classify your business.
If you use a tax advisor, ask for advice and talk as much as possible about your main source of income. NAICS Code 238320 – The paint and wall cladding company is an end code of the “construction industry”. In the United States, there are 32,407 companies operating in this sector, with an estimated employment of 203,938 people. Businesses with annual sales of less than $16,500,000 are considered small businesses by the SBA. Common types of examples in NAICS code 238320 – Paint and Wall Cladding Contractors are as follows: This industry includes establishments that primarily deal with interior or exterior painting or interior wall cladding. Work performed may include new work, additions, modifications, maintenance and repairs. The NAICS code for the North American Industry Classification System for Painters and Wall Coverings is 238320 for the construction sector.