Wondering if any NAICS expert could point me in the right direction. We have an entity (entity 1-operating company)that is a car dealership. We have a separate entity (diffent company with different EIN #s)(entity 2-real estate holding company) that is affiliated with entity 1 (same owner) that owns the land that the car dealership is on and leases it to entity 1. My thoughts that Entity 1 (car dealership should have a NAICS of 4411 and Entity 2 (land owner) should be 5311.
Is this accurate? Or should entity 2 also have an NAICS code of 4411 due to wanting the real estate holding company to have the same NAICS code as the operating company?
Affiliates or not, they are two different companies are they not? They have two different and distinct lines of business. They should be coded accordingly.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
I can tell you that many banks have levels of coding so that for credit concentration purposes they can show that the land leased to the dealership is dependent upon the car dealer industry and should therefore be in that bucket for exposure purposes.
_________________________ Kathleen O. Blanchard, CRCM "Kaybee" HMDA/CRA Training/Consulting/Mapping The HMDA Academy www.kaybeescomplianceinsights.com
rlcarey....that was my thoughts however, Kathleen makes a valid point as well. We are going to keep it as is, don't want to mess with the way the loan side is doing things.