The Founder's Guide to Starting a Company on F-1 OPT
Once you receive your EAD card, the rules completely change. This article is for recent graduates who want to use their initial 12-month OPT to build a startup as an active founder.
TL;DR / The Bottom Line
During your first 12 months of post-completion OPT, you are explicitly allowed to be self-employed and work full-time for your own startup. The business must be directly related to your college degree, and you must work at least 20 hours a week to avoid unemployment days.
Table of Contents
The 12-Month Golden Window
The initial 12 months of Optional Practical Training (OPT) is the most flexible work authorization you will ever have in the United States. Unlike the H-1B or STEM OPT, ICE regulations for standard OPT explicitly allow for self-employment.
This means you can incorporate an LLC or C-Corp, name yourself the CEO or Founder, and actively work day-and-night building your product, pitching to investors, and making sales. Furthermore, because standard OPT allows for unpaid employment, you do not need to have funding or pay yourself a salary. Just ensure you work at least 20 hours per week.
The "Directly Related" Rule
The single most important rule is that your startup's core business activity must be directly related to your major field of study.
If you graduated with a Computer Science degree, starting a B2B SaaS software company is perfectly fine. If you graduated with a degree in Biology, opening an e-commerce store selling t-shirts is a violation of your OPT status.
Proving Your Business Exists to USCIS
When you report your self-employment to your university's DSO, you must provide proof that your business is legitimate. If USCIS ever issues a Request for Evidence (RFE) during a future visa application, you will need to produce documents proving your business was operational and related to your degree, per USCIS OPT guidelines.
Keep a "Compliance Binder" containing:
- Articles of Incorporation / LLC Formation documents.
- An Employer Identification Number (EIN) from the IRS.
- A business bank account in the company's name.
- Client contracts, pitch decks, or a working website.
- A log proving you are working at least 20 hours per week.
Free Founder's Compliance Log
Download our Excel template to log your weekly 20+ hours of self-employment to satisfy OPT reporting requirements.
Frequently Asked Questions
Do I need a co-founder with a Green Card?
No. For the initial 12-month OPT, you can be a solo founder and own 100% of your business without needing a U.S. citizen co-founder.
Can I raise VC funding on OPT?
Yes. You can pitch to Venture Capitalists and raise funding. However, many VCs prefer you to have a long-term visa strategy (like an O-1 or H-1B) before writing a check.
Can I transition my OPT startup to STEM OPT?
This is where it gets very complicated. STEM OPT prohibits self-employment. To keep running your startup on STEM OPT, you must radically restructure your company. See Part 3 of this series.
Conclusion & Action Steps
The 12-month OPT period is an incredible opportunity to launch your dream company. You have full legal clearance to be self-employed, hustle full-time, and act as a CEO—as long as the business aligns with your degree.
Next Step: Register your business, get your EIN, and ensure you report your self-employment in the SEVP portal before you hit your 90 days of unemployment. Once your startup gains traction, immediately start planning for your STEM OPT or H-1B transition.