In a time when many students are interested in launching innovative business endeavors, international students must be careful to ensure that they do not unintentionally commit an F-1 or J-1 immigration status violation by working without authorization.
It may not always be clear when something becomes “work” for immigration purposes. For that reason, it is important that you always check in with OISS before starting an activity that could be considered work.
As an international student, you can brainstorm ideas, develop a business plan, or find a co-founder, for example, without needing to apply for F-1 or J-1 work authorization. However, you will reach a certain point when F-1 or J-1 work authorization may become necessary. Note that the “U.S. government considers starting your own business in the United States, also known as entrepreneurship, as work.” (Study in the States website)
Business Development Stages
| Work authorization is NOT needed to: | Work authorization IS needed to: |
| – Develop a business plan – Interview individuals in the field for research purposes – Register a company | – Advertise and offer goods and services – Build a website – Conduct fundraising or crowdsourcing – Hire independent contractors or interns – Manufacture beyond a prototype – Sign contracts for services or sales |
U.S. immigration law can present many challenges for students in F-1 or J-1 immigration status planning to create a company within the U.S. This requires planning and patience. OISS advisers can provide support based on your WashU sponsored visa category for studying and working at WashU, including work authorization benefits of the statuses mentioned below. It may also be necessary for you to speak with and retain a U.S. immigration attorney to advise on visa options and strategies.
Remember that all work history on social media accounts (LinkedIn, Facebook, etc.) should match the work authorization you have received in the U.S.
F-1 and J-1 on-campus work authorization
Skandalaris Student Enterprise Program (StEP)
This is a special work situation that combines the self-employment option with an on-campus location. In this unique program, WashU undergraduate students can own and operate an on-campus business that solely serves the WashU student body on the WashU campus.
International students can work at a company that they own in the WashU Student Enterprise Program (StEP) offered through the Skandalaris Center for Interdisciplinary Innovation and Entrepreneurship. This is considered on-campus employment. J-1 students must request authorization in MyOISS before beginning on-campus work.
F-1 and J-1 students are limited to 20 hours per week of on-campus employment during the fall and spring semesters.
Learn More
The Skandalaris Center is located on the Danforth Campus: Mallinckrodt 128. Find partnerships with like-minded entrepreneurs, inspiration, networking and connections with community partners.
F-1 students off-campus employment
F-1 international students may be eligible for off-campus employment through the following work authorization options:
F-1 Curricular Practical Training (CPT)
CPT is a type of work authorization that can be authorized if the work is “an integral part of an established curriculum” and “directly related to the student’s major area of study.”
A job offer letter and supervisor/employer are required to be eligible for CPT. Students starting their own business will need to have a co-founder (may have to be a U.S. citizen or permanent resident) or an entity with a larger share that can establish an employer/employee relationship to be eligible for CPT. There must be documentation that can prove this relationship. You may be asked to consult with an immigration attorney who specializes in working with entrepreneurs. Contact your OISS adviser for questions.
Each academic department has a specific office or staff member who reviews all requests for CPT. Please meet with your assigned academic or faculty adviser to discuss your self-employment proposition and how you would receive training to determine if it qualifies for CPT. Your academic department must first approve all CPT requests.
Students who are fully funded by WashU are limited to part-time employment up to an average of 10 hours per week.
See the Curricular Practical Training resource on the OISS website for additional information, including CPT approvers based on your school and academic program.
CPT opportunities are called a variety of names at WashU including, but not limited to:
- Practicums (Brown School)
- Externships (Law School)
- Internships (Olin Business and Sam Fox)
- Co-ops (McKelvey Engineering)
- Clinical experiences (School of Medicine)
- Research-based training (Arts & Sciences)
F-1 Optional Practical Training (OPT) and self-employment
Optional Practical Training (OPT) is another work authorization available to F-1 students. OPT does not need to be part of an established curriculum, but it must be directly related to your academic program of study.
F-1 students are eligible for up to 12 months of OPT total per degree level (Bachelors, Masters, Doctoral). OPT can be done Pre-Completion (during your degree) and/or Post-Completion (after you graduate). The amount of Pre-Completion OPT an F-1 student is authorized for will be deducted from the amount of Post-Completion OPT a student will be eligible to apply for.
- An F-1 student interested in entrepreneurship and planning to start their own business in the U.S. (before or after graduation) must apply for and receive OPT authorization from USCIS before engaging in business development activities that require work authorization.
- You should keep documentation to prove that you have proper business licenses and are actively engaged in a business related to your degree program
See the Post-Completion OPT section of the OISS website for detailed information on OPT eligibility, application processes, reporting requirements while on OPT and much more. Note that the Pre-Completion OPT application process is similar and the timeline for an approval can be several months. For questions about Pre-Completion OPT and application processes, schedule an appointment with your OISS adviser.
Students who utilize OPT for entrepreneurial pursuits should keep detailed records about employment (including but not limited to):
- Business licenses showing you as an employer
- Federal Employer Identification Number (EIN)
- Proof that you are actively engaged in the business
- Letters of employment documenting your title, duties, location, pay rate (if applicable)
- Bank account information for your business
- Proof that the business is related to the student’s (your) degree program
STEM OPT Extension: self-employment not permitted
STEM OPT Extension is a 24-month extension work authorization after Post-Completion OPT that is available for STEM-eligible programs. A supervisor/employer is required to apply for this work authorization; you cannot be self-employed on STEM OPT Extension.
J-1 students off-campus self-employment
Academic Training is the work authorization associated with the J-1 student categories. Self-employment is not possible on Academic Training. The Department of State has provided guidance that a training supervisor is required, and the visa sponsor must evaluate the effectiveness and appropriateness of the academic training in achieving the stated goals and objectives in order to ensure the quality of the academic training program. [22 CFR 62.23(f)(6)].
International entrepreneur rule
If you are considering starting a business in the U.S., you may be eligible to apply for entrepreneur parole, depending on your circumstances. To learn more about this option and other pathways for entrepreneurs, we encourage you to review the USCIS Options for Noncitizen Entrepreneurs to Work in the United States. Please note that entrepreneur parole is not an immigration status but rather a temporary authorization allowing you to work in the U.S. exclusively for the approved startup. As such, OISS is unable to provide advising or sponsorship for this option. If you believe you may qualify and wish to explore this further, we recommend consulting with an immigration attorney experienced in supporting entrepreneurs. Based on USCIS guidelines for the International Entrepreneur Rule, the following must be true to be eligible:
- Entrepreneurs may be either living abroad or already in the United States.
- Startup entities must have been formed in the United States within the past five years.
- Startup entities must show substantial potential for rapid growth and job creation by showing at least $311,071 in qualified investments from qualifying investors, at least $124,429 in qualified government awards or grants, or alternative evidence.
The entrepreneur may be granted an initial parole period of up to 2.5 years. If approved for re-parole, the entrepreneur may receive up to another 2.5 years, for a maximum of 5 years. Up to 3 entrepreneurs per startup can be eligible for parole under the International Entrepreneur Rule.
FAQs & scenarios
There are special circumstances for on-campus work. Through Skandalaris StEP Programs, WashU students can propose business ideas, apply for business loans and operate on campus, even renting storefront space on the South 40.
Contact your OISS adviser if you have questions about owning a business after graduation.
You might. If the content was written while in the U.S. and published for pay and/or with the intent to solicit compensation, you need work authorization. Contact your OISS adviser if you are considering publishing content.
If you wrote the content while physically outside of the U.S., and are receiving passive income through investments or royalties from that work/service, you do not need work authorization.
Government agencies have become quite savvy regarding social media and internet searches, and it is especially important that your visa-based employment authorizations align with your employment activities. Failure to obtain proper work authorization while participating in employment activities could jeopardize future U.S. immigration benefits, including as H-1B, TN, E-3, O-1, or L-1 sponsorship and legal permanent residency, etc.
Social media handles are requested as part of the DS-160 application for a non-immigrant visa. Any online postings of the following can be easily reviewed by consular officers:
- CV/resume, LinkedIn page, etc.
- Company websites with job titles
- Corporate incorporation documents stating titles that are included in public records at the local, state, or federal level. This also includes the Corporate Transparency Act, Beneficial Ownership Information
WashU offers a multitude of courses exploring, developing and launching start-up companies and businesses. Depending on what stage of the process you are in, you may need work authorization even if you are working with a WashU professor and/or enrolled in a course.
If you are planning to enroll in an entrepreneurship course that involves launching your own business, it is always best to meet with your OISS adviser before enrolling.
In general, an F-1 student will need to obtain employment authorization to be self-employed or start their own company. There are many things to consider in these scenarios, so F-1 students should reach out to their OISS adviser. Before doing any kind of work, it is important to discuss a student’s specific circumstances while physically in the U.S. on F-1 student immigration status.
In general, students are allowed to invest in the stock market as it’s considered “passive income”. If you are not providing any kind of services or labor, it is considered “passive”. Students should consider that profits will be taxable, and there may be additional immigration implications if it is your business. Consult with an immigration attorney for additional considerations.
Students cannot actively invest other people’s money or engage in day trading, as this may be considered employment. As a reminder, unpaid services or labor may be viewed as “work” by the federal government, even if you are not getting paid.
Contracted work, often referred to as work for hire or 1099 employment, may suggest self-employment. In order to receive employment authorization for contract work, you must establish an employer/employee relationship.
If requested by DHS, you should be prepared to provide evidence showing the duration of the contract period and the name and address of the contracting company.
Check with OISS
The OISS team of advisers is here to answer questions about your immigration status, federal immigration regulations, immigration documents, work authorization, changing status and more.
The U.S. federal government takes employment authorization very seriously. Working without appropriate authorization can have long-term negative consequences. If you are not sure about whether your business development and entrepreneurial activities might need U.S. employment authorization, please consult an experienced immigration attorney.
Attorney assistance
Partnering with an immigration attorney can be a critical step in creating a business. You will want to connect with someone early to help you realize your plan and how your immigration status intersects with your business model. You may also need to consult with a corporate attorney regarding the creation of a business.
You can search for a licensed immigration attorney on the AILA (American Immigration Lawyers Association) website.
Disclaimer statement
The Office for International Students and Scholars (OISS) provides resources and content for general informational and educational purposes only. This information does not constitute legal advice. The information provided is subject to changes in the law. For specific legal questions or guidance, students and scholars are encouraged to seek personalized legal advice from a qualified attorney at their own discretion and expense.