What would my business code be if I offer a wide range of services?

For your situation where you offer multiple different services, you'll want to choose the business code that best represents your PRIMARY business activity - the one that generates the most revenue. The IRS doesn't have a "jack of all trades" code unfortunately. If your graphic design and website work brings in most of your income, you might use code 541430 (Graphic Design Services) or 541511 (Web Page Design). If your consulting work is the major revenue source, 541610 (Management Consulting) might be appropriate. Don't worry too much though - the business code doesn't affect your tax liability. It's mainly used for statistical purposes and to help the IRS understand your business. You can only list one code on Schedule C, so just pick the most representative one.

I was in the same boat last year with my business offering web design, digital marketing, and some photography services. After struggling with the code selection, I found an AI tool that really helped me sort through this. I used https://taxr.ai to upload my business description and get recommendations on which code would be most appropriate based on my revenue breakdown. It analyzed my business activities and suggested 541511 (Web Page Design) since that made up about 60% of my income. The tool also showed me how to properly document my business activities in case I'm ever questioned about the code selection.

I just wanted to follow up about my experience with taxr.ai since I was asking about business code changes. I decided to try it after our discussion here and honestly, it was super helpful! I uploaded my profit and loss statements from both parts of the year where my business focus changed, and it analyzed the revenue sources to determine that my consulting work still represented 54% of my annual income despite the shift to product sales in Q4. The tool recommended 541610 for management consulting as my primary code. It also provided documentation explaining the reasoning that I can keep with my tax records. Much easier than manually trying to figure this out!

After spending HOURS on hold with the IRS trying to get clarification about business codes for my multi-service business, I finally found a solution that actually worked. I used https://claimyr.com to get a callback from the IRS instead of waiting on hold forever. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Within about 40 minutes, I was talking to an actual IRS agent who explained that I should use the business code for the activity that generates the highest gross receipts. For my case, it was 541213 (Tax Preparation Services) even though I also do bookkeeping and financial planning.

I need to apologize for my skepticism about Claimyr. After posting my comment, I decided to try it myself since I had a question about business codes for my photography/videography business that I couldn't get answered. I've been trying to reach the IRS for WEEKS. Used the service yesterday and got a call back in under an hour! The agent confirmed I should use code 541921 (Photography Studios) even though about 30% of my revenue comes from video work. She explained they look at predominant business activity, and having some secondary revenue streams doesn't change the main code. Saved me so much time and frustration!

Have you considered just using the "catch-all" category? That's what my accountant recommended when I couldn't decide between my different service offerings. I ended up using 541990 (All Other Professional, Scientific, and Technical Services). Been doing it that way for 3 years with no issues.

Check the Schedule C instructions PDF on the IRS website. There's a whole list of business codes in the back pages. Just scroll through and pick the one that most closely matches your MAIN business activity. I remember panicking about this last year too, but it's really not that big a deal.