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US: registering my consulting firm — which NAICS code works for cybersecurity consulting?

İİbrahim T***MemberCommunity member
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#1

I'm setting up a single-member LLC in Virginia to provide cybersecurity consulting, penetration testing, and compliance audit services to the US market. I've already cleared state registration and the EIN application; now I'm working on a business bank account, professional liability insurance, and SAM.gov registration so I can bid on government contracts down the line.

This is where choosing a NAICS code came up. Since cybersecurity isn't listed under a single dedicated code, I see consultants making different choices. Some go straight for 541512 (Computer Systems Design Services), others pick 541519 (Other Computer Related Services), and some independent auditors lean toward 541690 (Other Scientific and Technical Consulting Services).

What is the safest bet to pick as the primary code for cybersecurity consulting? Could choosing the wrong code cause technical issues with banks during credit or account opening, with professional insurance premiums, or when bidding on SBA small business contracts?

YYağmur A***Member
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Most Helpful#2

Short answer: For a business focused on cybersecurity consulting and pen testing, the industry-standard primary code in the US is considered to be 541512 (Computer Systems Design Services); for federal contracts or audit work, 541519 and 541690 should be added to your SAM.gov profile as secondary codes. Choosing the wrong primary code can misclassify your insurance risk profile and cause mismatches with contract set-asides.

Key points you should keep in mind during this process: 1) Primary vs. Secondary Codes: Your business doesn't need to be locked into just one code. You declare a primary code representing your core business on your tax returns and at the bank, but you can define multiple secondary codes in federal registration systems. Contracting agencies base their RFPs on one of these codes depending on the scope of work. 2) Industry Perception: NAICS 541512 is the most comprehensive code covering network security, systems architecture, and technical consulting. Most IT solicitations for defense or government agencies are posted under this code. If you only do strategy or documentation consulting, 541690 could be considered, but it falls short for technical pen testing. 3) Insurance and Financing: When getting professional liability and cyber insurance, underwriters review your business description based on this code. Under 541512, you must have pen testing specifically endorsed on the policy; otherwise, it might be treated as standard IT support, leaving you uncovered in claims.

İİbrahim Y***Member
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#3

Keep an eye on SBA size standards. Code 541512 has an average annual revenue cap to qualify as a small business. When you leverage small business set-asides in federal contracting, the agency verifies these limits against your primary code in the registry.

note: I wrote this based on my own experience, it might not apply to everyone.

İİbrahim Y***Expert
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#4

For federal contracts and state-level procurement processes, registering 541512 as your primary code is the most credible approach in the eyes of agencies. Also, ensure the primary activity code reported on your tax filings doesn't conflict with your banking records.

İİlker P***Member
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#5

We started with a similar setup in Virginia two years ago. We made 541512 our primary, then added 541519 and 541690 on the side. Professional liability came out to around 1,800 dollars a year. If we'd just picked a general management consulting code, insurance wouldn't have covered a data breach resulting from a pen test.

GGökhan A***Member
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#6

When opening a bank account if you tell the rep "cybersecurity", they sometimes confuse it with crypto or high-risk finance and hold it up in compliance. If you give the code as 541512 and say IT systems design and consulting the process goes through without a hitch.

KKoray T***MemberCommunity member
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#7

you can add as many codes as you want on sam.gov anyway dont sweat it... make 541512 your primary and fill out the rest as a list whichever one is needed when bidding does the job.

Correction: I misremembered the figure, it was a bit lower.

YYiğit Ç***MemberCommunity member
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#8

Some people make 541519 their primary just because it's general, but that code is mostly a catch-all for unclassified work. When enterprise procurement teams see it, they might question the company's technical depth.

GGökhan D***Member
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#9

virginia is pretty much the hub for federal cybersecurity work you picked a great market. anyway don't worry about the code starting with 541512 and backing up systems auditing with secondary codes is the cleanest path.

OOya B***MemberCommunity member
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#10

The registration steps should go like this: 1) Report 541512 as your primary activity with the state and the tax agency 2) Make sure penetration testing is explicitly covered in your insurance policy 3) Add 541519 and 541690 as secondaries on your federal contracting profile.

SSultan G***New member
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#11

Sorry, but this doesn't apply in every case. Trying to do this alone is the most expensive way.

DDeniz B***Expert
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#12

I went through the same thing two years ago. Don't rely on a single measure; go layer by layer.

Taking notes for two weeks yields better results than a six-month estimate. If you have questions, write them; I'll answer as best I can.

ZZafer B***Veteran
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#13

To get into the details: An automated scan report is not the same as a penetration test.

Of course, it varies if your situation is different.

TTayfunVeteran
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Doki · E-commerce infrastructure · 2024

#14

Thanks for posting.

İİlknur G***VeteranCommunity member
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#15

This thread is archived.

AAhmet K***Member
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Doki · Brand identity · 2026

#16

My questions are cleared up, thanks.

ZZehra Y***Member
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#17

Following.

AAycan U***MemberCommunity member
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#18

i have no experience with cyybersecurity consulting naics code so Im asking but taking notes for two weeks yields better results than a six-month estimate.

NNeslihan T***Member
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#19

Do you think this works at any scale? If it's your first time, start small; scaling comes later.

Good luck with that.

FFiliz Ö***Member
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#20

You're right, I've been down that road too. Everything goes well for the first three months; problems arise in the fourth.

An untested backup is not a backup. I'm also curious if anyone does it differently.

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