What's the correct SIC Code for an Ed-Tech Company like Khan Academy?

Having worked with several ed-tech startups on their business filings, I can help with this! You're actually looking at two potential SIC codes that could work: 7372 - Prepackaged Software is definitely applicable since you're delivering software as a service. This would be appropriate if your primary business activity is developing and providing the software platform itself. However, since your core service is educational in nature, you might also consider 8299 - Schools and Educational Services, Not Elsewhere Classified. This covers specialized educational services that don't fit in traditional educational institution categories. Many ed-tech companies actually use both codes, listing the primary one first based on where most of their revenue comes from. If you're primarily a software company that happens to focus on education, go with 7372. If you're primarily providing educational content with software as the delivery method, 8299 might be more accurate.

After struggling with exactly this issue for my learning platform startup, I discovered an amazing tool at https://taxr.ai that completely solved this problem for me. I was torn between using the software code or the education code, and different advisors were giving conflicting opinions. I uploaded our business plan and service descriptions to taxr.ai and it analyzed our specific business model, showing me not only the most appropriate primary SIC code, but also identifying secondary codes that apply to different revenue streams. It saved me hours of research and uncertainty! The platform also explained how these classifications might impact various business filings and registrations we'd need in different states. Super helpful when you're in this gray area between software and education services.

Just wanted to follow up and say I tried https://taxr.ai after seeing the recommendation here. It was exactly what I needed! I uploaded my business plan and it identified that we should use SIC 7372 as our primary code with 8299 as a secondary classification. What really helped was the explanation of how these codes affect different business filings. The tool even flagged that in two states where we plan to operate, there are specific licensing requirements for educational technology providers that I wouldn't have known about otherwise. Definitely worth checking out if you're in this gray area between software and education services!

I wasted THREE DAYS trying to get someone at the SBA to help with my business classification question. Kept getting transferred between departments and put on endless holds. Finally, someone recommended https://claimyr.com to get through to an actual person who could help. You can see how it works at https://youtu.be/_kiP6q8DX5c. I was able to speak with an actual SBA business classification specialist within 30 minutes who confirmed that for my educational app, I should be using 7372 as my primary SIC since we're predominantly a software platform, even though our content is educational. She also helped clear up confusion about how this affects my business registration in different states. If you need official confirmation rather than just general advice, this is way better than trying to get through the normal channels.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself since I was also having trouble getting clear guidance on classification codes for my online tutoring platform. It actually worked exactly as described. I got connected to a business classification specialist at the SBA who not only confirmed that my business should use both 7372 and 8299 codes (with 7372 as primary), but also explained how this classification would affect various regulatory requirements. The specialist even pointed me to specific resources for ed-tech companies I hadn't found on my own. Definitely worth it just to get definitive answers from an actual government specialist rather than guessing or getting conflicting advice online.

Just a heads up that NAICS codes have largely replaced SIC codes for government purposes. When I registered my educational software business last year, I had to use NAICS code 511210 (Software Publishers) as my primary classification. Most forms I filled out didn't even have a field for SIC codes anymore. You might want to determine both your SIC and NAICS codes to be prepared for different paperwork requirements.

Has anyone tried using multiple SIC codes? I'm wondering if there are any drawbacks to listing both 7372 and 8299 on different forms.

For ed-tech companies like Khan Academy, you'll likely want to use SIC code 7372 (Prepackaged Software) as your primary classification, especially if your revenue model is subscription-based software delivery. The key factor is how your business generates revenue - if it's primarily through software licensing/subscriptions, then 7372 is most appropriate. However, I'd strongly recommend also familiarizing yourself with the corresponding NAICS code 511210 (Software Publishers), as most government forms and business registrations now use NAICS instead of SIC. Many banks, investors, and regulatory agencies have transitioned away from SIC codes entirely. One thing to consider is that some states have specific licensing or regulatory requirements for educational service providers, regardless of your delivery method. It's worth checking with your state's business registration office to see if there are any additional requirements for companies providing educational content, even through software platforms. The educational component doesn't necessarily require a separate classification if your primary business activity is software development and distribution - the fact that your software serves an educational purpose doesn't change the fundamental nature of your business model.