Self-Employment Options on Post-Completion OPT

For many international students in the United States on F-1 visas, the transition from education to employment is a major step. The period after graduation, known as post-completion Optional Practical Training (OPT), allows these students to gain practical experience in their field of study. However, the requirement to find employment within 90 days to comply with OPT rules often creates pressure to quickly find a job. Interestingly, not all students are aware that self-employment is a viable option during this period.

Self-Employment on Post-Completion OPT

The U.S. Immigration and Customs Enforcement (ICE) provides clear guidance for F-1 students interested in self-employment. According to ICE, students on post-completion OPT may start their own businesses, provided they adhere to certain conditions:

• Business Licenses: Students must obtain any necessary business licenses to operate legally within their jurisdiction.
• Engagement in the Business: The student must be actively involved in the business, which involves managing and running the business operations.
• Relation to Degree Program: The business must be directly related to the student’s major area of study.
• Minimum Work Hours: The student should work in their business for no less than 20 hours per week to maintain their OPT status.

This guidance opens the door for entrepreneurial students to create their own job opportunities, ensuring they can meet the OPT employment requirements without needing to find a traditional employer.

Compliance and Documentation

For those opting for self-employment, meticulous documentation is crucial:

• Work Plan: Keep detailed records of the business plan, your role in the business, and how the business relates to your studies.
• Hours Worked: Document your work hours to prove compliance with the 20-hour minimum requirement.
• Financial Records: Maintain clear records of business transactions and financial statements.

This documentation is essential not only for maintaining legal status but also for any future verification by immigration authorities.

Restrictions under STEM OPT Extension

It’s important to note that self-employment has limitations under the STEM OPT extension. The Department of Homeland Security specifies that:

• Employer-Employee Relationship: F-1 students on STEM OPT must have a bona fide employer-employee relationship with the employer who signs their Form I-983 Training Plan.
• Compliance for Start-Ups: Students can be involved in start-ups or small businesses as long as the business can provide a formal training plan and is in good standing with E-Verify. The company providing the training must also employ the student.

This means that while STEM OPT students can participate in a start-up, they cannot be self-employed in the traditional sense where they would act as their own employer.

Conclusion

For F-1 visa holders on post-completion OPT, starting a business related to their degree program offers a promising avenue to fulfill their employment requirement while fostering entrepreneurial skills. This option not only helps in complying with the 90-day unemployment rule but also empowers students to shape their careers innovatively. As always, consulting with an immigration attorney who specializes in immigration law can provide valuable guidance and ensure that all legal requirements are met. Embracing self-employment can be a rewarding pathway for students looking to turn their innovative ideas into viable business ventures.