F-1 and J-1 International Students

Pursuing Entrepreneurship Activities in the U.S.

Starting a Business as an Entrepreneur

F-1 and J-1 international students wishing to start or run a business in the U.S. must consider the immigration implications. The U.S. federal government categorizes most of the entrepreneurial work as employment, even if you are not being paid. This also applies to working remotely for a non-U.S. business and work conducted from an on-campus location or through an on-campus entrepreneurship class or project. There are, however, preliminary steps that you can take in this endeavor.

Students working on a start-up idea/project

Students working on a start-up idea/project may be permitted to do so without the issuance of off- campus employment authorization, as long as the start-up idea is limited as follows:

Academic activities for the start-up idea/project are pursued, such as:

  • Development of a business plan
  • Interviewing individuals in the field area you are researching
  • On-campus creation of a basic prototype and test models within the confines of an academic activity
  • Research such as background/literature review on the field/business sector
  • Customer discovery
  • Competitive analysis
  • Drafting marketing materials

No company or other legal entity has been created and no business activities are being pursued.

Only ASU student support funding/scholarship is being used and that funding is paid directly to the student for participation in the activity, in which case the project will be considered on-campus employment.


 

Students working for an established startup

Students working for an established startup, where there is an employer-employee relationship, will require an off-campus employment authorization (CPT, Pre-Completion or Post-Completion OPT). 

F-1 Post Completion OPT or J-1 Academic Training

F-1 Post Completion OPT or J-1 Academic Training allows for entrepreneurship activities, as a student would be self-employed. Examples of activities allowed once receiving Pre-Completion, Post-Completion OPT or Academic Training authorization include:

  • Registering the company/startup under local/state business entities or licensing
  • Outreach to venture capital or investors, fundraising or crowdsourcing
  • Manufacturing beyond a basic prototype
  • Cultivating suppliers or buyers
  • Signing contracts for services or sales
  • Pursuit by the student of the activities of the startup/company’s business.

The Importance of Employment Authorization

The U.S. federal government takes unauthorized employment very seriously. Unauthorized work can have significant negative consequences for your future in the U.S. If you are unsure whether your business development and entrepreneurial activities require U.S. employment authorization, it's advisable to consult with ISSC.

J-1 status

Employment authorization options for students in J-1 status include:

These authorizations have specific time periods and limitations, and may be restricted to less than 20 hours per week if you are still completing your degree. Please consult with your student advisors for more details.


Additional Resources

Frequently Asked Questions

Yes, you are eligible to work part-time on campus for Arizona State University (ASU) while school is in session and full-time during vacation periods. If you hold J-1 status, please contact your school official and obtain permission to work on campus.

To work off-campus or for an employer other than ASU, you must have prior employment authorization. The types of off-campus employment authorization for F-1 students are CPT and OPT and for J-1 students is Academic Training.

F-1 students should apply for Pre-Completion OPT or Post-Completion OPT if they plan to start a business in the U.S. Self-employment is considered work by the U.S. government. Please be reminded that this should not interfere with your academic progress and you are only authorized to engage in any business activities during the authorization issued by USCIS. F-1 students are not allowed to start a business under CPT, but may work for an established start up.

F-1 students should apply for Pre-Completion OPT or Post-Completion OPT if they plan to start a business in the U.S. Self-employment is considered work by the U.S. government. Please be reminded that this should not interfere with your academic progress and you are only authorized to engage in any business activities during the authorization issued by USCIS.

Yes, so long as any funding awarded is deposited in your personal account and the proceeds are only used for academic activities enumerated above.

For each educational level of study, you are eligible for a 12-month period of OPT. If you are in a qualifying STEM program of study, you can apply for a 24-month STEM OPT extension. Please note, you cannot be your own employer for the purpose of the STEM OPT extension. J-1 students are eligible for 36 months Academic Training if their degrees are listed in a qualifying STEM program of study. Please not that J-1 visa offers cultural and educational exchange opportunities and Exchange Visitors are expected to return to their home country upon completion of their degree program or Academic Training.

Under the International Entrepreneur Rule (IER), the Department of Homeland Security (DHS) may use its authority to grant a period of authorized stay, on a case-by-case basis, to noncitizen entrepreneurs who show that their stay in the United States would provide a significant public benefit through their business venture and that they merit a favorable exercise of discretion. (This period of authorized stay is technically called “parole.”)

Consult an experienced immigration attorney for other immigration options that allow employment.