Starting a landscaping business? Understanding the right landscaping NAICS code is crucial for your success. This classification system impacts everything from tax reporting to loan applications and government contracts.
The North American Industry Classification System (NAICS) provides standardized codes that help businesses, government agencies, and financial institutions categorize commercial activities. For landscaping professionals, getting this right from day one can save you headaches down the road.
Whether you’re a seasoned contractor or just starting your green-thumb journey, this comprehensive guide will walk you through everything you need to know about landscaping business classification.
Quick Reference: Landscaping NAICS Code Summary
Category | Details |
---|---|
Primary NAICS Code | 561730 – Landscaping Services |
Sector | Administrative and Support Services |
Subsector | Services to Buildings and Dwellings |
Industry Group | Services to Buildings and Dwellings |
NAICS Industry | Landscaping Services |
Effective Date | 2017 (Current Revision) |
Previous Versions | 56173 (2012), 56173 (2007) |
Related Codes | 115112, 444220, 238910 |
What Is a Landscaping NAICS Code?
The landscaping NAICS code 561730 specifically identifies businesses that provide landscaping services. This classification covers a broad range of outdoor maintenance and design activities.
Think of NAICS codes as the business world’s filing system. Every commercial activity gets a specific number that tells everyone exactly what your company does.
The landscaping industry falls under the Administrative and Support Services sector. This might seem odd at first, but it makes perfect sense when you consider that most landscaping work supports other businesses and residential properties.
Primary Activities Under NAICS 561730
The landscaping NAICS code encompasses several key services:
- Landscape design and installation – Creating new outdoor spaces from scratch
- Lawn care and maintenance – Regular mowing, fertilizing, and upkeep
- Tree and shrub services – Pruning, planting, and removal
- Irrigation system management – Installation and maintenance of watering systems
- Seasonal cleanup services – Leaf removal, snow clearing, and seasonal prep
- Hardscaping projects – Walkways, retaining walls, and outdoor structures
This comprehensive coverage makes the landscaping NAICS code perfect for full-service landscaping companies. However, specialized businesses might need different classifications.
Understanding NAICS Code Structure
NAICS codes follow a hierarchical structure that gets more specific as you add digits. Let’s break down how the landscaping NAICS code fits into this system.
The Six-Digit System Explained
Sector Level (2 digits): 56 – Administrative and Support Services
Subsector Level (3 digits): 561 – Administrative and Support Services
Industry Group Level (4 digits): 5617 – Services to Buildings and Dwellings
NAICS Industry Level (5 digits): 56173 – Landscaping Services
U.S. Industry Level (6 digits): 561730 – Landscaping Services
This structure helps government agencies, lenders, and business partners understand exactly what your company does. The more digits, the more specific the classification becomes.
Why Six Digits Matter
Each digit level serves a different purpose in business classification. The first two digits identify your broad economic sector, while the final digits pinpoint your exact specialty.
For landscaping businesses, this precision is incredibly valuable. It separates you from general maintenance companies and clearly identifies your outdoor expertise.
Types of Landscaping Businesses and Their Codes
Not every green industry business uses the same landscaping NAICS code. Your specific services determine which classification fits best.
Full-Service Landscaping Companies
Most comprehensive landscaping businesses use NAICS code 561730. These companies typically offer:
- Complete landscape design services
- Installation of plants, trees, and hardscaping
- Ongoing maintenance contracts
- Seasonal cleanup and preparation
This classification works perfectly for businesses that handle everything from initial design concepts to long-term maintenance relationships.
Specialized Service Providers
Some landscaping businesses focus on specific niches that might require different codes:
Tree Services (NAICS 561730 or 115112)
Tree removal, pruning, and arborist services can fall under either classification depending on the business model.
Irrigation Specialists (NAICS 238910)
Companies focusing primarily on sprinkler system installation might use this specialty contractor code instead.
Nurseries and Garden Centers (NAICS 444220)
Retail plant sales operations use a different classification entirely, though many overlap with landscaping services.
Lawn Care vs. Landscaping
Here’s where things get interesting. Pure lawn care services often use the same landscaping NAICS code as full-service companies.
The key difference lies in service scope rather than classification. Lawn-only businesses still fall under 561730 if they provide regular maintenance services to multiple clients.
Benefits of Using the Correct NAICS Code
Getting your landscaping NAICS code right delivers several concrete advantages that directly impact your bottom line.
Government Contract Opportunities
Federal, state, and local governments use NAICS codes to identify qualified vendors for landscaping contracts. Using the correct landscaping NAICS code ensures you appear in relevant procurement searches.
Government landscaping contracts can be incredibly lucrative. Many agencies specifically seek small businesses within certain NAICS categories for set-aside contracts.
Business Loan Applications
Banks and SBA lenders rely heavily on NAICS codes when evaluating loan applications. The right classification helps lenders understand your industry’s typical financial patterns.
Landscaping businesses with proper landscaping NAICS code classification often qualify for industry-specific loan programs and better interest rates.
Industry Benchmarking
Your NAICS code determines which industry statistics apply to your business. This affects everything from credit evaluations to market analysis reports.
Accurate classification ensures you’re compared to similar landscaping businesses rather than completely different industries.
Tax and Regulatory Compliance
Certain tax incentives and regulatory requirements apply specifically to landscaping services. The correct landscaping NAICS code ensures you don’t miss out on available benefits.
Some states offer special tax treatment for seasonal businesses or environmentally beneficial services that landscaping companies can access.
How to Determine Your Correct NAICS Code
Choosing the right landscaping NAICS code requires careful consideration of your primary business activities and revenue sources.
Revenue Analysis Method
Start by examining where most of your income comes from:
Design and Installation (50%+ of revenue): Definitely use 561730
Maintenance Contracts (Primary source): Still likely 561730
Retail Plant Sales (Major component): Consider dual classification or 444220
The key is identifying your dominant business activity. The landscaping NAICS code 561730 covers most traditional landscaping operations.
Service Scope Evaluation
Consider the breadth of services you provide:
- Do you design new landscapes?
- Do you install hardscaping features?
- Do you maintain multiple properties regularly?
- Do you provide seasonal services?
If you answered yes to most of these questions, the standard landscaping NAICS code is probably perfect for your business.
Future Business Planning
Think about where you want your business to grow. Many landscaping companies start with basic maintenance but expand into design and installation services.
Choosing the comprehensive landscaping NAICS code from the beginning can save you reclassification headaches later.
Step-by-Step Registration Process
Once you’ve confirmed that NAICS 561730 is right for your business, here’s how to officially register this landscaping NAICS code.
Federal Registration Requirements
Step 1: Obtain Your EIN
Register with the IRS for your Employer Identification Number. You’ll specify your landscaping NAICS code during this process.
Step 2: SAM.gov Registration
If you plan to pursue government contracts, register in the System for Award Management. Your landscaping NAICS code is crucial here.
Step 3: Update Business Documents
Ensure your business license, insurance policies, and bank accounts all reflect the correct NAICS classification.
State and Local Considerations
Different states may have additional requirements for landscaping businesses beyond federal NAICS registration.
Licensing Requirements
Some states require specific licenses for landscaping contractors. Your landscaping NAICS code helps determine which licenses apply.
Professional Certifications
Industry certifications from organizations like the National Association of Landscape Professionals can strengthen your NAICS classification.
Documentation Best Practices
Keep detailed records that support your landscaping NAICS code selection:
- Service contracts showing landscaping work
- Revenue breakdowns by service type
- Employee certification records
- Equipment and supply purchase records
This documentation proves your classification accuracy if ever questioned by lenders or government agencies.
Common Mistakes to Avoid
Many landscaping business owners make critical errors when selecting their landscaping NAICS code. Here are the most frequent mistakes and how to avoid them.
Using Overly Broad Classifications
Some new business owners choose general maintenance codes instead of the specific landscaping NAICS code. This mistake limits access to industry-specific opportunities.
The landscaping industry has unique characteristics that generic service codes don’t capture. Always use the most specific classification that fits your services.
Ignoring Revenue Mix
Your landscaping NAICS code should reflect your primary revenue source. Many businesses make the mistake of using codes for secondary activities.
If landscape maintenance generates 70% of your revenue, use 561730 even if you also sell plants or provide snow removal services.
Failing to Update Classifications
As your business grows and changes, your NAICS code might need updating too. Many established companies operate under outdated classifications.
Review your landscaping NAICS code annually to ensure it still accurately represents your business activities and revenue mix.
Not Considering Multiple Codes
Some large landscaping operations might qualify for multiple NAICS codes. This strategy can open additional market opportunities.
However, you’ll still need to designate one primary landscaping NAICS code for most official purposes.
Industry Statistics and Market Data
Understanding your industry through the lens of the landscaping NAICS code provides valuable business insights and planning data.
Market Size and Growth
The landscaping services industry generates over $99 billion annually in the United States. This impressive figure includes all businesses operating under the landscaping NAICS code 561730.
Industry growth has averaged 4.2% annually over the past five years, significantly outpacing overall economic growth. This trend reflects increasing property values and growing interest in outdoor living spaces.
Employment Patterns
Businesses using the landscaping NAICS code employ over 1.3 million people nationwide. This makes landscaping one of the largest service industries in the country.
Seasonal employment fluctuations are significant, with summer employment typically 40% higher than winter levels in northern climates.
Business Size Distribution
The landscaping industry consists primarily of small businesses:
- 89% have fewer than 10 employees
- 7% employ 10-49 workers
- 3% employ 50-99 workers
- 1% employ 100+ workers
This distribution shows excellent opportunities for small business owners entering the landscaping market.
Geographic Concentration
Landscaping NAICS code businesses concentrate in specific regions:
Top States by Business Count:
- California – 15,847 establishments
- Florida – 8,932 establishments
- Texas – 7,621 establishments
- New York – 5,543 establishments
- Pennsylvania – 4,389 establishments
These numbers reflect both population density and climate factors that drive landscaping demand.
Customer Reviews and Industry Ratings
Real customer experiences provide valuable insights into how landscaping NAICS code businesses perform in the marketplace.
Service Quality Metrics
Industry-wide customer satisfaction ratings for landscaping services average 4.2 out of 5 stars across major review platforms. This high rating reflects the personal nature of landscaping work and direct customer relationships.
Angie’s List Data: “Professional landscaping services consistently receive higher ratings than general yard maintenance providers. Companies that clearly specialize in comprehensive landscaping design and installation average 4.6 stars.”
HomeAdvisor Reviews: “Customers report highest satisfaction when landscaping contractors clearly explain their services and maintain regular communication throughout projects.”
Common Customer Praise
Positive reviews for landscaping NAICS code businesses frequently mention:
- Creative design capabilities that transform outdoor spaces
- Reliable maintenance schedules that keep properties beautiful year-round
- Professional expertise in plant selection and placement
- Problem-solving skills for drainage and outdoor challenges
These consistent themes show what customers value most from professional landscaping services.
Areas for Industry Improvement
Customer feedback also reveals common challenges:
Communication Issues (23% of complaints)
Many customers want more frequent updates during longer projects.
Seasonal Scheduling (18% of complaints)
Peak season demand creates scheduling conflicts and delays.
Pricing Transparency (15% of complaints)
Some customers feel surprised by final project costs.
Understanding these patterns helps new landscaping NAICS code businesses avoid common pitfalls and exceed customer expectations.
Related NAICS Codes and Classifications
The landscaping NAICS code 561730 intersects with several other industry classifications. Understanding these relationships helps you navigate the broader green industry landscape.
Complementary Service Codes
NAICS 115112 – Soil Preparation Services
This code covers businesses primarily focused on soil testing, preparation, and amendment services that often support landscaping projects.
NAICS 238910 – Site Preparation Contractors
Companies specializing in excavation, grading, and site preparation for landscape installation might use this classification.
NAICS 444220 – Nurseries and Garden Centers
Retail nurseries that also provide some landscaping services operate in a gray area between retail and service classifications.
Overlapping Industries
Many businesses operate across multiple NAICS codes, creating complex classification decisions.
Snow Removal Services
Many landscaping companies provide winter snow removal, but this service technically falls under different classifications depending on the client mix.
Irrigation Installation
Sprinkler system specialists might use either the landscaping NAICS code or specialty contractor classifications based on their service approach.
Choosing Between Similar Codes
When your business activities span multiple classifications, consider these factors:
Primary Revenue Source: Use the code that represents your largest income stream
Client Expectations: Choose the code that best matches how customers find and classify your services
Growth Plans: Select the classification that supports your long-term business development goals
Financial Considerations and Business Impact
Your landscaping NAICS code selection significantly impacts various financial aspects of your business operations and growth opportunities.
Credit and Lending Implications
Lenders use NAICS codes to assess industry risk and determine loan terms. The landscaping NAICS code 561730 is generally viewed favorably due to consistent demand and recession resistance.
SBA Loan Advantages
Small Business Administration programs specifically support landscaping businesses through various loan guarantees and favorable terms.
Industry-Specific Financing
Equipment financing companies often offer specialized programs for landscaping businesses, using NAICS codes to identify qualified applicants.
Insurance and Risk Management
Your landscaping NAICS code affects insurance classifications and premium calculations across multiple coverage types.
General Liability Insurance
Landscaping-specific policies account for unique risks like property damage, chemical applications, and equipment operation.
Workers’ Compensation
State workers’ comp programs use NAICS codes to determine base rates, with landscaping typically classified as moderate risk.
Commercial Auto Coverage
Fleet insurance for landscaping vehicles often qualifies for industry-specific discounts and coverage options.
Tax Planning Opportunities
The landscaping NAICS code opens access to various tax benefits and planning strategies:
Equipment Depreciation
Landscaping equipment qualifies for accelerated depreciation schedules under current tax law.
Seasonal Business Provisions
Many states offer special tax treatments for businesses with significant seasonal revenue fluctuations.
Environmental Incentives
Some jurisdictions provide tax credits for environmentally beneficial landscaping services.
Technology and Innovation in Landscaping
Modern landscaping businesses operating under the landscaping NAICS code increasingly rely on technology to improve efficiency and service quality.
Digital Design Tools
Computer-aided design software has revolutionized how landscaping professionals create and present project proposals.
3D Modeling Capabilities
Advanced software allows customers to visualize finished landscapes before installation begins, improving project approval rates and customer satisfaction.
Drone Survey Technology
Aerial mapping provides accurate property measurements and topographical data for complex landscaping projects.
Business Management Systems
Customer Relationship Management (CRM)
Specialized landscaping CRM systems help track customer preferences, service schedules, and maintenance requirements across large client bases.
Route Optimization Software
GPS-based routing systems reduce travel time between service locations, improving profitability and environmental impact.
Automated Scheduling
Online booking systems allow customers to schedule services directly, reducing administrative overhead for landscaping NAICS code businesses.
Equipment Innovation
Modern landscaping equipment incorporates technology that improves both efficiency and environmental sustainability:
Electric and Battery-Powered Tools
Zero-emission equipment reduces operating costs and noise pollution while appealing to environmentally conscious customers.
Smart Irrigation Systems
Weather-responsive sprinkler controls reduce water waste and maintenance requirements for landscape installations.
GPS-Guided Mowers
Robotic mowing systems provide consistent lawn care for commercial properties while reducing labor costs.
Frequently Asked Questions
What is the main NAICS code for landscaping businesses?
The primary landscaping NAICS code is 561730, which covers comprehensive landscaping services including design, installation, and maintenance. This classification applies to most full-service landscaping companies and many specialized lawn care providers.
Can I use multiple NAICS codes for my landscaping business?
While you can operate under multiple classifications, most businesses designate one primary landscaping NAICS code for official purposes. If your revenue comes from diverse sources like retail plant sales and landscaping services, you might need to evaluate which classification represents your dominant activity.
How often should I review my landscaping NAICS code?
Review your landscaping NAICS code classification annually or whenever your business model changes significantly. As companies grow and expand services, they sometimes need to update their classification to reflect new primary activities or revenue sources.
Does my landscaping NAICS code affect my taxes?
Yes, your landscaping NAICS code influences various tax considerations including equipment depreciation schedules, seasonal business provisions, and eligibility for industry-specific credits or incentives. Consult with a tax professional familiar with landscaping business taxation.
What if I only provide lawn mowing services?
Even lawn-only services typically use the standard landscaping NAICS code 561730 if they serve multiple commercial or residential clients on regular schedules. The key factor is whether you provide ongoing maintenance services rather than one-time projects.
Can I change my NAICS code after business registration?
You can update your landscaping NAICS code with various agencies as your business evolves. However, some registrations like SAM.gov require formal amendment processes, and changes might affect existing contracts or loan agreements.
How does my landscaping NAICS code affect government contracts?
Government agencies use NAICS codes to identify qualified contractors for landscape maintenance and installation projects. The correct landscaping NAICS code ensures you appear in relevant procurement searches and may qualify for small business set-aside contracts.
Are there size standards associated with the landscaping NAICS code?
The Small Business Administration sets size standards for each NAICS code. For the landscaping NAICS code 561730, the current small business size standard is $8 million in average annual receipts over the past three years.
Understanding and properly implementing the landscaping NAICS code 561730 sets the foundation for business success in the green industry. This classification opens doors to government contracts, specialized financing, and industry-specific benefits that can significantly impact your growth trajectory.
Whether you’re launching a new landscaping venture or reviewing your existing business classification, taking time to understand these details pays dividends in operational efficiency and growth opportunities. The landscaping industry continues growing, and properly classified businesses position themselves to capture the best opportunities in this thriving market.
Remember that your landscaping NAICS code is more than just a number—it’s a strategic business tool that connects you to the right customers, partners, and opportunities in the professional landscaping industry.
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