Can you be self-employed or start your own business on OPT or STEM OPT?

What types of work count on post-completion OPT?

SEVP's OPT policy guidance says: "All OPT employment, including post-completion OPT, must be in a job that is related to the student's degree program." It then lists the types of employment that may count for students who are not on a STEM extension (§7.2.1, SEVP Policy Guidance 1004-03):

This guidance dates from 2010. ICE says it "remains in effect," but where its 17-month STEM content conflicts with the 2016 24-month STEM rule, the rule should be followed (ICE, Practical Training). That matters for STEM OPT, below.

The rules every type has to meet

• Directly related to your degree. OPT is employment "directly related to the student's major area of study" (8 CFR 214.2(f)(10)(ii)(A)). The SEVIS Help Hub says: "It is the student's responsibility to relate the training opportunity to the program of study." (SEVIS Help Hub, Add, Edit, Delete OPT Employer)
• At least 20 hours a week. Post-completion OPT "must be at least 20 hours per week or full-time" (SEVIS Help Hub, F-1 OPT). With a variable schedule, "within a month, it should average out to at least 20 hours per week" (§7.1.5, SEVP Policy Guidance 1004-03).
• Not before your EAD date. "The student may not begin optional practical training until the date indicated on his or her employment authorization document" (8 CFR 214.2(f)(10)(ii)(A)).
• Gaps count. Each day without qualifying employment, weekends included, counts toward the 90-day limit (§7.1.6). In the guidance's own SEVIS table, the end of a work-for-hire contract is entered as "Unemployed" with the end date of the last contract (§7.3.3).

Starting your own business on post-completion OPT

The guidance's test for a self-employed business owner has three parts. You must be able to prove that you:

1. have "the proper business licenses";
2. are "actively engaged" in the business; and
3. run a business "related to the student's degree program."

The 20-hour rule applies too. The guidance does not say which licenses count. Ask your DSO what evidence it expects.

How self-employment is reported

• In the SEVP Portal: "Click the Self Employed Check box if the user is self-employed. The portal will enter the student's name in the Employer name section." You also enter a job title, full or part time, a start date and a "Relation to Field of Study" explanation (SEVP Portal, Update Employer Information).
• By your DSO in SEVIS: for a self-employed student or independent contractor, the DSO enters "the primary location where the student performs the work," which "may be a residence, office, or formal business" (SEVIS Help Hub, Add, Edit, Delete OPT Employer).
• The written description: before adding an employer, the DSO should get a written description that includes your job title, employer name, major, whether the work is full time or your average weekly hours, and your "regular job duties and how they directly relate to the degree that qualified the student for OPT" (same page).
• Timing: "While on OPT, the student must report to the DSO within 10 days any changes in the student's name or address, and employment information" (SEVIS Help Hub, F-1 OPT). The SEVP Portal guide explains where official sources differ on this deadline.

Gig work and 1099 contracts

Gigs

The guidance's gig entry is titled "Short-term multiple employers (performing artists)." Its example is "a musician or other type of performing artist," and it says to keep "a list of all gigs, the dates and duration" (§7.2.1). For reporting, the SEVIS Help Hub tells DSOs to mark multiple short-term gigs as self-employed and describe the work in the remarks, "for example, playing music or acting with multiple gigs" (Add, Edit, Delete OPT Employer).

The guidance's only example is a performing artist. If your gigs are a different kind of work, ask your DSO before you rely on them. The general rules still apply: the work must relate to your degree and average at least 20 hours a week, and days without qualifying work count toward the limit (§7.1.6).

Work for hire (1099 contracts)

The guidance describes work for hire as "commonly referred to as 1099 employment," where "an individual performs a service based on a contractual relationship rather than an employment relationship." If DHS asks, you must be ready to show "the duration of the contract period and the name and address of the contracting company" (§7.2.1, SEVP Policy Guidance 1004-03). Days between contracts with no qualifying work can count as unemployment (§7.1.6), so keep every contract's start and end dates.

Can you be self-employed on STEM OPT?

Not in the same way. The STEM OPT extension is built around an employer that signs a training plan for you.

What the regulation requires

• E-Verify and an EIN. "The student's employer is enrolled in E-Verify," remains in good standing, and "must also have an employer identification number (EIN) used for tax purposes" (8 CFR 214.2(f)(10)(ii)(C)(5)).
• Form I-983. You must get signatures "from an appropriate individual in the employer's organization" before the DSO can recommend the extension ((C)(7)(i), same regulation). See EADly's Form I-983 guide.
• 20 hours. "A student may not engage in practical training for less than 20 hours per week" ((C)(8)).
• Employer attestations. The employer attests that it has the resources and personnel to train you, that you won't replace a U.S. worker, and that the opportunity helps you reach your training goals ((C)(10)).

Bona fide employee, not your own signer

• To employ a STEM OPT student, "an employer must have and maintain a bona fide employer-employee relationship with the student." The employer "may not be the F-1 student's employer in name only, nor may the F-1 student work for the employer on a volunteer basis" (USCIS Policy Manual, Vol. 2, Pt. F, Ch. 5).
• Study in the States: "F-1 students cannot qualify for STEM OPT extensions unless they will be bona fide employees of the employer signing the Form I-983 because F-1 students may not provide the employer attestation (i.e., signatures) on their own behalf." The same page adds: "However, they may use a start-up business so long as all regulatory requirements are met." (Students: Determining STEM OPT Extension Eligibility)
• The Policy Manual says "sole proprietorships," "multiple employer arrangements," temp agencies and consulting firms that provide labor for hire "may not be able to demonstrate a bona fide employer-employee relationship." For start-ups, alternative compensation may be allowed if the student can show they are a bona fide employee and their compensation, "including any ownership interest in the employer entity (such as stock options)," is commensurate with that of similarly situated U.S. workers (Ch. 5).
• "DHS reviews on a case-by-case basis whether the F-1 student will be a bona fide employee of the employer signing the training plan" (same chapter).

Reporting on STEM OPT

STEM OPT students can't add an employer in the SEVP Portal. "By regulation, STEM OPT participants must send a completed Form I-983 to their DSO," and the DSO enters the employer in SEVIS (Update Employer Information). A new employer needs a new Form I-983 within 10 days of starting (8 CFR 214.2(f)(10)(ii)(C)(7)(iv)).

Post-completion OPT and STEM OPT side by side

Records to keep

Most of these come straight from the guidance. Keep them for every job, business, contract or gig:

• Business licenses and evidence that the business is active and related to your degree (§7.2.1).
• Contracts, with start and end dates and the name and address of the contracting company (§7.2.1).
• A gig list with dates and duration (§7.2.1).
• Proof of hours. For a variable schedule, the 20 hours averages out within a month (§7.1.5). Timesheets or invoices can show this.
• A written description of your duties and how they relate to your degree. If the link isn't clear, SEVP recommends "a signed letter from his or her hiring official, supervisor, or manager stating how the student's degree is related to the work performed" (§7.2.4).
• Your reports to the SEVP Portal or your DSO. "The student should keep a record of all reports made to the DSO and the method by which the reports are made." (§7.3.2, SEVP Policy Guidance 1004-03)
• On STEM OPT: each signed Form I-983 and every evaluation.

If your count of days without qualifying work is getting close to the limit, see What happens if you go over 90 days of unemployment.

Taxes are a separate question

Immigration rules and tax rules are separate. On the tax side, the IRS page on foreign students and Social Security taxes says: "An NRA is not liable for the self-employment tax." It adds that once a person becomes a resident alien under the tax residency rules, they are liable for self-employment tax under the same conditions as a U.S. citizen, and that a totalization agreement can also create liability. The same page also says: "As a general rule, the immigration laws of the U.S. do not permit nonimmigrants to earn self-employment income in the U.S." Its self-employment section does not mention OPT (IRS, Foreign Student Liability for Social Security and Medicare Taxes).

For the immigration question, ask your DSO. For tax questions, use the IRS pages or a qualified tax professional. EADly's F-1 taxes guide covers Social Security and Medicare basics.

Keeping your work records in EADly

EADly is a private, local-first app for iPhone and Android:

• Employment records. Save each job or business with employer name, job title, dates, type (full time, part time or volunteer) and whether it's related to your field. EADly Free saves every F-1 job (OPT, STEM OPT and CPT).
• Unemployment-day counter. A job you mark as not related to your field doesn't stop the counter.
• Document Vault. Keep licenses, contracts and letters encrypted on your phone and link them to a job. EADly Free stores one file; EADly Plus removes the file-count limit.

What it doesn't do: EADly doesn't decide whether a business, contract or gig qualifies, and it doesn't report anything to your DSO, SEVIS or USCIS.

Get EADly on the App Store or Google Play. It's a free download.

Common questions

Sources

All checked October 22, 2026. The date in brackets is the date each page showed.

• SEVP Policy Guidance 1004-03, Update to Optional Practical Training: https://www.ice.gov/doclib/sevis/pdf/opt_policy_guidance_042010.pdf [dated 04/23/2010; checked October 22, 2026]
• ICE, Practical Training: https://www.ice.gov/sevis/practical-training [updated 12/10/2024; checked October 22, 2026]
• 8 CFR 214.2(f)(10)(ii)(A) and (f)(10)(ii)(C)(5), (7), (8) and (10), eCFR as of Sept 14, 2026: https://www.ecfr.gov/on/2026-09-14/title-8/chapter-I/subchapter-B/part-214/subpart-A/section-214.2 [eCFR version of 09/14/2026; checked October 22, 2026. We cite this version because USCIS says it will proceed under the previous regulatory provisions after a court postponed the July 17, 2026 rule: https://www.uscis.gov/i-539]
• USCIS Policy Manual, Vol. 2, Pt. F, Ch. 5: https://www.uscis.gov/policy-manual/volume-2-part-f-chapter-5 [current as of 10/02/2026; checked October 22, 2026]
• Study in the States, Students: Determining STEM OPT Extension Eligibility: https://studyinthestates.dhs.gov/stem-opt-hub/for-students/students-determining-stem-opt-extension-eligibility [last updated 03/25/2026; checked October 22, 2026]
• Study in the States, SEVIS Help Hub, F-1 Optional Practical Training (OPT): https://studyinthestates.dhs.gov/sevis-help-hub/student-records/fm-student-employment/f-1-optional-practical-training-opt [last updated 05/19/2025; checked October 22, 2026]
• Study in the States, SEVIS Help Hub, F-1 Add, Edit, Delete OPT Employer: https://studyinthestates.dhs.gov/sevis-help-hub/student-records/fm-student-employment/f-1-add-edit-delete-optional-practical [last updated 04/28/2025; checked October 22, 2026]
• Study in the States, SEVP Portal Help, Update Employer Information: https://studyinthestates.dhs.gov/sevp-portal-help/maintain-information/update-employer-information [last updated 05/25/2023; checked October 22, 2026]
• IRS, Foreign Student Liability for Social Security and Medicare Taxes: https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-security-and-medicare-taxes [last reviewed 08/18/2026; checked October 22, 2026]

This article summarizes official U.S. government sources and is not legal, immigration or tax advice. EADly is not a law firm and is not affiliated with USCIS, DHS, ICE or the IRS.

More guides

• STEM OPT extensionEligibility, E-Verify employers and reporting
• Form I-983 guideThe STEM OPT training plan, section by section
• SEVP Portal & reportingHow to report employers and changes
• Over the OPT unemployment limitBlog: what happens after 90 or 150 days