NAICS 2022 subsector * USA Verified: Census NAICS 2022 · 2023-03-17
518
NAICS 518 — Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
NAICS 518 is the subsector code for computing infrastructure providers, data processing, web hosting, and related services establishments in the United States. It forms part of the hierarchical North American Industry Classification System maintained by the Census Bureau.
Official data
| Feature | Description |
|---|---|
| Official name | North American Industry Classification System (NAICS) 2022 |
| Issuing authority | U.S. Census Bureau with OMB, Statistics Canada, and INEGI |
| Tax authority | Internal Revenue Service (IRS) |
| Purpose | Statistical business classification and federal contracting (SAM.gov, SBA standards) |
| Used in | SAM.gov registration, SBA size determinations, IRS tax classification, SEC EDGAR (via SIC crosswalk) |
| Active since | 2022 (current edition) |
| Hierarchy level | Sector (2-digit) |
| Source | https://www.census.gov/naics/ |
When do you need NAICS 518?
1 Registering on SAM.gov for federal contracting — enter NAICS 518 as your primary industry code.
2 Checking whether the SBA size standard for computing infrastructure providers, data processing, web hosting, and related services applies to your business for set-aside contracts or loans.
3 Classifying your main line of business when applying for grants, contracts, loans, or market research surveys.
4 Comparing this code against legacy NAICS 2017 records or related SIC codes for historical data alignment.
NAICS hierarchy path
Trace the classification from the broadest sector down to this national industry code.
Cross-references & crosswalks
How to register a computing infrastructure providers, data processing, web hosting, and related services business in the US
1
Verify NAICS classification
Confirm that Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services matches your digital services or technology activity.
3
Implement privacy compliance
Review CCPA (California), state AG privacy laws, and FTC data security guidance applicable to your user data handling.
4
Register for sales tax nexus states
Remote sellers with economic nexus must register in states where sales exceed the threshold (typically $100K or 200 transactions).
US Tax Forms & Registration
| Form Name | Who Files It | Frequency |
|---|---|---|
| Profit or Loss from Business | ||
| U.S. Return of Partnership Income | ||
| U.S. Corporation Income Tax Return | ||
| U.S. Income Tax Return for an S Corporation | ||
| Self-Employment Tax | ||
| Estimated Tax for Individuals | ||
| Application for Employer Identification Number (EIN) | ||
| Entity Classification Election | ||
| Nonemployee Compensation | ||
| Employer's Annual Federal Unemployment (FUTA) Tax Return | ||
| Employer's Quarterly Federal Tax Return | ||
| Request for Taxpayer Identification Number and Certification |
Entity Comparison
$
No federal sales tax in the United States. Sales tax is imposed at state and local levels, ranging from 0% to 10.25%. Economic nexus thresholds (following South Dakota v. Wayfair) require out-of-state sellers to collect sales tax once they exceed a state's revenue or transaction threshold, typically $100,000 in sales or 200 transactions per year.
No state income tax: Alaska (AK), Florida (FL), Nevada (NV), New Hampshire (NH), South Dakota (SD), Tennessee (TN), Texas (TX), Washington (WA), Wyoming (WY)
Who uses this code?
E-commerce Store Owner
Sells physical or digital products through Shopify, Amazon FBA, Etsy, or a proprietary online store.
Licenses
- ●Sales tax permit (per economic nexus)
- ●Business license
- ●Resale certificate
Tax Forms
- ●Schedule C (Form 1040)
- ●Schedule SE (Form 1040)
- ●State sales tax return
Digital Marketing Agency Owner
Runs a full-service agency offering PPC, SEO, content, email, and social media marketing to clients.
Licenses
- ●Business license
- ●Google/Facebook ads certification
- ●Client service agreements
Tax Forms
- ●Form 1065 or 1120-S
- ●Form 940 (FUTA)
- ●Form 941
- ●Form 1099-NEC (freelancer payments)
Freelance Web Developer
Designs and builds custom websites for small businesses, startups, and agencies using modern frameworks.
Licenses
- ●Business license (city/county)
- ●Home occupation permit (if home-based)
Tax Forms
- ●Schedule C (Form 1040)
- ●Schedule SE (Form 1040)
- ●Form 1040-ES
Mobile App Developer
Builds iOS and Android applications as an independent contractor or through their own app studio.
Licenses
- ●Business license
- ●Apple Developer / Google Play Developer account
Tax Forms
- ●Schedule C (Form 1040)
- ●Schedule SE (Form 1040)
Who is this code for
Occupations and roles commonly associated with this classification
15-1243.00Database ArchitectsView occupation →15-1254.00Web DevelopersView occupation →15-1299.01Web AdministratorsView occupation →15-2051.00Data ScientistsView occupation →
Also relevant for
Source: O*NET / BLS occupation data · O*NET 30.2 / BLS SOC
Child codes (1)
Frequently asked questions
- What is NAICS 518?
- NAICS 518 is the North American Industry Classification System code for Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. It classifies this business activity for statistical, regulatory, and government procurement purposes. Federal agencies use NAICS codes to collect and publish data about the US economy, determine SBA size standards, and set aside contracts for small businesses.
- What licenses and permits does a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services need?
- A Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services typically needs a local business license, a federal EIN from the IRS, and industry-specific permits depending on the sector. Check with your city or county clerk for a general business license, your state's professional or industry licensing board for any required occupational licenses, and your state's tax authority for a sales tax permit if you sell taxable goods or services.
- How do I register a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services business in the United States?
- To register a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services business, first choose your legal structure: sole proprietorship (simplest, uses SSN), LLC (personal liability protection, files with your Secretary of State), or corporation (Form 1120 or 1120-S). Register your business name (DBA) with your county if operating under a trade name. Obtain an EIN from the IRS at irs.gov/ein. Register with your state revenue department for any applicable taxes.
- What tax forms does a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services file with the IRS?
- Tax forms depend on your entity type. A sole proprietor files Schedule C with Form 1040 and Schedule SE for self-employment tax (15.3%). An LLC taxed as a partnership files Form 1065 with Schedule K-1s. A C-Corporation files Form 1120 (21% flat rate). An S-Corporation files Form 1120-S. All businesses paying employees file Form 940 (FUTA) annually and Form 941 quarterly. Estimated tax payments are made via Form 1040-ES four times per year.
- Is Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services the right NAICS code for my business?
- Your NAICS code should reflect your primary business activity — the one generating the most revenue or value. If Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services describes your main line of business, NAICS 518 is likely correct. If you have multiple distinct activities, you may need separate codes for statistical reporting. For federal contracting, your SAM.gov registration should use the code that best matches the work you perform. Review the official NAICS 518 description and exclusions to confirm it fits your operations.
- Does a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services need to be PCI DSS compliant to process payments?
- If your business stores, processes, or transmits credit card data, you must comply with PCI DSS (Payment Card Industry Data Security Standard). Using a hosted payment gateway like Stripe or Braintree (where card data never touches your server) significantly reduces your compliance burden — you typically just need to complete a SAQ-A self-assessment. Direct card processing requires full SAQ-D compliance, penetration testing, and quarterly vulnerability scans. Non-compliance can result in fines and losing the ability to process cards.
- What professional licenses does a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services need for IT/cybersecurity work?
- Most IT and digital services do not require government licenses, but certain activities trigger regulatory requirements. Cybersecurity firms performing penetration testing should have a detailed Statement of Work, NDA, and authorization letter. If you handle protected health information (PHI) for healthcare clients, you must sign a Business Associate Agreement (BAA) under HIPAA. If you provide services to federal agencies, you may need FedRAMP authorization or CMMC (Cybersecurity Maturity Model Certification) compliance.
- Does a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services need a privacy policy on their website?
- Yes. If your website or app collects any personal information (name, email, IP address, payment data), you need a privacy policy. The California Consumer Privacy Act (CCPA/CPRA) requires businesses over $25M revenue, handling 100K+ consumer records, or deriving 50%+ revenue from data sales to provide specific disclosures and opt-out mechanisms. GDPR applies if you target EU users. FTC Act Section 5 prohibits unfair or deceptive practices regarding privacy promises. All 50 states have data breach notification laws.
- What terms of service and legal agreements does a Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services need?
- A Terms of Service (ToS) or Terms of Use agreement sets the rules for using your digital product. It should cover: acceptance of terms, user obligations, intellectual property rights, payment terms, limitation of liability, dispute resolution (arbitration clause optional), and governing law. SaaS businesses should also have a Service Level Agreement (SLA) and Acceptable Use Policy (AUP). Platforms with user-generated content should include DMCA notice-and-takedown procedures under Section 512(c).