Primary Business Activity
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Definition: Primary business activity refers to the main function or operation a business performs to generate the majority of its revenue. It determines how a business is classified for tax, registration, and compliance purposes.
Example: A handmade soap maker who primarily creates and sells soaps would list their primary business activity as manufacturing under a related NAICS code, such as 325611 – Soap and Other Detergent Manufacturing.
Resources:
- IRS Business Activity Codes: Reference the IRS Activity Code List or Government of Canada’s Industry Code List to align your business activity with tax reporting requirements.
- NAICS Code Lookup Tool: Use the NAICS official search tool to match your business activity to a specific industry code.
Learn More: Explore our guide for more details on classifying your business activities accurately.
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