Yes, F-1 students on Optional Practical Training (OPT) can be self-employed (including freelancing, working as 1099 independent contractor or starting a business) during the standard 12-month initial OPT period, provided they meet strict requirements to ensure the employment is legitimate, active, and directly related to their major area of study.
Understanding Optional Practical Training (OPT)
Optional Practical Training (OPT) is a temporary employment benefit that allows F-1 students to gain hands-on experience in a U.S. workplace, directly applying the theoretical knowledge acquired during their degree program. The authorization for this training is granted specifically for a position that is directly related to the student’s major area of study.
It is generally available after the student has completed their degree program (Post-Completion OPT).
Key Distinctions and Eligibility
CPT vs. OPT: It’s important to distinguish between the two types of practical training.
Curricular Practical Training (CPT): Employment that is an integral part of an established curriculum and is undertaken while the student is still attending school.
Optional Practical Training (OPT): Generally available after the student has completed their degree program (Post-Completion OPT), although it can sometimes be used before graduation.
Eligibility: To be eligible for OPT, an F-1 student must generally have completed one full academic year of study. Students enrolled in English language training programs are ineligible for practical training.
Duration: Students are typically authorized for 12 months of practical training per educational level. This means you can become eligible for another 12 months of practical training when you change to a higher educational level.
STEM Extension: Students in Science, Technology, Engineering, or Mathematics (STEM) fields may be eligible for lengthier periods of OPT through the STEM 24-month extension.
Relationship to Degree: All OPT employment, including self-employment, must be directly related to the student’s major area of study.
Employment must be a minimum of 20 hours per week, paid or unpaid, to maintain legal F-1 OPT status. You should retain evidence from your employers to verify that you are working at least 20 hours per week.
Unemployment Limit: During post-completion OPT, you cannot accrue more than 90 days of aggregate unemployment. Self-employment only counts as “employment” if all OPT requirements are met.
Summary of Post-Completion OPT Types
The following table summarizes the types of qualifying employment on Post-Completion OPT, including self-employment.
Employment Type
Description
Compliance
Self-Employed Business Owner
Starting a business and being self-employed.
You must have all necessary business licenses, and you must be actively engaged in work related to your degree for at least 20 hours per week.
Work for Hire/Consulting
Independent contractor employment (1099), performing a service based on a contract.
Keep documentation showing the duration of the contract and the contracting company’s name and address.
Multiple Employers
Working for more than one company.
All employment must be related to your degree program.
Multiple Short-Term Employers
Having several short gigs (musicians/artists, etc).
Keep a list of all gigs, dates, and durations.
Unpaid Employment
Working as a volunteer or unpaid intern.
Must be at least 20 hours per week and directly related to your degree.
Requirements for Self-Employment on Initial OPT
To remain compliant while self-employed on OPT, you must adhere to all OPT requirements. This helps you prove your business is a legitimate form of practical training.
1. Business Structure and Licenses
The self-employment must be structured as a business entity, such as an LLC or Corporation.
Formation: You must legally establish the business and obtain all required federal, state, and local licenses and permits.
Proof of Business: Taking these steps demonstrates to USCIS that your business is real and lawfully established, not just a “paper entity.”
2. Active Engagement
You must be actively engaged in the business; passive ownership does not qualify.
Work Hours: You must consistently perform duties that align with your degree, typically working at least 20 hours per week.
Evidence of Activity: You must maintain detailed records of your day-to-day operations, such as:
Client contracts, invoices, and communications
Product development logs, code repositories, or design files
Time logs of active, ongoing, degree-related work
Pre-Revenue Startups: A pre-revenue business is permitted, but you must still provide clear evidence of active development (for example, prototypes, business plans, project files, etc.).
3. Directly Related to Degree
The work you perform must be directly related to your major area of study or a concentration within your academic program.
Clear Connection: Be prepared to provide a written narrative that clearly explains how your business activities and duties draw upon the knowledge and skills gained from your specific coursework.
DSO Review: Your Designated School Official (DSO) may request this explanation when updating your Student and Exchange Visitor Information System (SEVIS) record.
4. Retain Documentation
Maintaining a complete and organized digital and paper trail is critical for compliance.
Required Records: Keep all formation documents, licenses, contracts, invoices, bank statements, payroll stubs, and especially evidence of active development/work output.
Purpose: This evidence is necessary for your DSO to update your SEVIS record and is vital if USCIS issues a Request for Evidence (RFE) for any future immigration benefit (for example, STEM OPT or H-1B).
Self-Employed OPT: A Bridge to Long-Term Work Visas and Green Cards
The business you establish during your Self-Employed OPT can be leveraged as a stepping stone to secure various long-term nonimmigrant work visas or even a Green Card (Permanent Residency), potentially allowing you to transition without relying on a traditional corporate sponsor.
Immigration Pathways for OPT Entrepreneurs
The following categories are often pursued by successful OPT business owners:
H-1B Visa for Business Owners:
Entrepreneurs can have their own U.S. company file an H-1B petition for them.
USCIS and DHS have clarified its requirements under H-1B Modernization Rule, making it possible for business owners to meet the necessary employer-employee relationship criteria, allowing them to participate in the annual H-1B lottery and obtain an H-1B visa.
Requires a substantial investment in the U.S. business (often cited around $100,000, though smaller amounts may qualify depending on the business type and location).
Our E2 visa lawyers specialize in complex E-2 visa applications, including those involving existing business acquisitions, holding companies or complex corporate structures.
O-1 Visa (Exceptional Ability):
For individuals who can demonstrate extraordinary ability in the sciences, arts, education, business, or athletics.
The success, publications, media recognition, and other achievements garnered from the OPT self-employment can build the portfolio of evidence required for an O-1 petition.
EB-2 National Interest Waiver (EB-2 NIW) Green Card:
EB-2 NIWis an employment-based pathway to Permanent Residency that allows the applicant to self-petition (waiving the labor certification requirement).
The business activities performed under OPT can be used to demonstrate that the entrepreneur’s proposed endeavor is of national importance and that the U.S. would benefit from waiving the standard job offer requirement.
The OPT Application Process: Filing and Timing
Applying for OPT requires the F-1 student to coordinate with their Designated School Official (DSO) and file an application with U.S. Citizenship and Immigration Services (USCIS).
Key Steps and Deadlines
DSO Recommendation: The DSO must first recommend OPT in the student’s SEVIS record and provide a signed, dated Form I-20 to the student, indicating that OPT has been recommended. This step ensures the student is eligible and aware of their responsibilities.
Filing Form I-765: The student must file Form I-765, Application for Employment Authorization, with USCIS as early as 90 days prior to the program end-date and no later than 60 days after the program end-date. The I-765 must be received by USCIS within 30 days of the date the DSO entered the recommendation into SEVIS. [8 CFR 214.2(f)(11)(i)(B)(2)]
Start Date: The requested OPT start date must be no more than 60 days after the student’s program end date.
Employment Start: You may not begin employment until the start date indicated on your Employment Authorization Document (EAD), which will be the later of the requested date or the date USCIS adjudicates the authorization. [8 CFR 214.2(f)(11)(i)(D)]
Adjudication: USCIS reviews the application based on the DSO’s recommendation and other eligibility factors. Denials are not appealable.
Maintaining F-1 Status During and After OPT
F-1 status is granted for Duration of Status (D/S). For a student with approved Post-Completion OPT, this status is specifically defined.
Valid Status Periods
Your F-1 status remains valid during the following periods:
Pending Application: After completing your educational program, as long as your OPT application has been properly filed and is pending approval.
During Authorized OPT: While you are properly engaging in authorized OPT employment, including self-employment.
Grace Period: For 60 days after your OPT employment authorization expires.
The 90-Day Unemployment Limit
Maintaining status during Post-Completion OPT is dependent upon employment.
Unemployment Cap: Students cannot accumulate an aggregate of more than 90 days of unemployment during the initial 12-month OPT period. [8 CFR 214.2(f)(10)(ii)(E)]
Counting Unemployment: Every day during the OPT validity period that you lack qualifying employment is counted as a day of unemployment. This includes days traveling abroad while unemployed.
Qualifying Employment: Employment is considered “qualifying” if it is directly related to your degree and meets the minimum hour requirements. International travel while holding qualifying employment (authorized leave or travelling as part of their employment) does not count toward the 90-day limit.
Important Note: A student who splits OPT time between two degrees at the same level is granted a separate 90-day unemployment period for each new OPT authorization.
Reporting and Completion Requirements
Reporting Changes: The F-1 nonimmigrant must report any change of name, address, or interruption of employment to their DSO. The DSO must update the SEVIS record accordingly.
14-Month Completion Rule: All practical training must be completed within a 14-month period following the completion of study. To utilize a full 12 months of OPT, the employment authorization must begin no later than two months after the program end date (unless the student is eligible for a STEM extension).
Why Partner with Malescu Law?
We provide clear, personalized guidance to F-1 students obtaining an OPT through self-employment and other work visas.
We serve companies and individuals across all 50 states, the District of Columbia and Puerto Rico.
Anda Malescu is a US immigration lawyer and Florida Bar Board Certified Expert in International Law. A member of the elite category of Florida Bar lawyers recognized for her exceptional knowledge, skill and professionalism, she advises US and international clients, including investors and entrepreneurs, on business immigration and corporate law matters. She holds a JD degree from University of Miami School of Law and a Master's degree in Economics and Business from Erasmus University Rotterdam in the Netherlands. She is a member of the Florida Bar.
