Can You Be Self-Employed on OPT? Rules for Founders

What SEVP allows on regular OPT

SEVP guidance, as quoted by university offices, lists self-employed business owners among allowed types of post-completion OPT work.

You must hold the proper business licenses and be actively engaged in a business related to your degree. Running a store unrelated to your major would not count.

Other flexible work on OPT

• 1099 contract work, also called work for hire. Keep each contract's dates and the client's name and address.
• Several short gigs. Keep a list with dates and hours, and report them.
• Work through an agency, if you average at least 20 hours a week.
• Several part-time jobs that add up to 20 hours a week, each related to your major.

Records to keep

• Business registration and any licenses you need.
• An EIN letter from the IRS, if your business has one.
• Client contracts, invoices and proof of payment.
• A weekly log of hours and the work you did.
• A short statement linking the business to your major, signed if possible by an adviser or mentor.
• Tax filings for the business.

Reporting self-employment

Report the business as your employer in the SEVP Portal within 10 days of starting. Use your own business as the employer name and its address.

If your DSO's office has its own form for self-employment, use it. Some schools ask for more proof than others.

Why STEM OPT will not cover your startup

USCIS says the STEM OPT employer must have a bona fide employer-employee relationship with you. It lists sole proprietorships among arrangements that may not meet this.

Study in the States says you cannot sign Form I-983 for yourself. The employer must provide all signatures.

Startups can be STEM OPT employers if they meet every rule and are enrolled in E-Verify. That usually means someone other than you supervises and evaluates your training. See the I-983 training plan.

Founders and H-1B later

Since January 17, 2025, USCIS allows an H-1B for someone who owns a controlling interest in the petitioning company. The first petition and first extension are each limited to 18 months.

Most of your time must go to specialty occupation duties. The lottery still applies unless the company is cap-exempt. See H-1B side businesses for what changes once you hold H-1B.

This is general information, not legal advice. Confirm your situation with your DSO or an immigration attorney.

Questions

Sources

• Temple University ISSS: Acceptable Employment on OPT and STEM OPT
• Study in the States: F-1 Optional Practical Training (SEVIS Help Hub)
• USCIS: Optional Practical Training Extension for STEM Students
• Study in the States: STEM OPT Students Must Train with Bona Fide Employers
• Federal Register: Modernizing H-1B Requirements final rule (Dec. 18, 2024)

Read next

What Is OPT? F-1 Work Rules, Limits and Job SearchOPT Unemployment Days: The 90 and 150-Day RulesHow to Find a Job on OPT: Which Employers Hire