Q: Can I start an online business which is related to my study major while on F1 OPT?
I am on my F1 OPT and working full time. I have completed my Masters in Packaging Engineering. Is it possible for me to open up an Etsy/Amazon/Ebay shop that specifically sells packaging for small/home business products? My ultimate goal is to make it a physical business with physical address which will serve local shop owners. Of course I will not be manufacturing the packaging but rather source them from different vendors, will that be an issue? Do I need to open up a company if I sell through Etsy/Amazon/Ebay? How will I pay taxes for my income through online shops?
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A:
Starting an online business while on F1 OPT is possible, but there are some important factors to consider. OPT regulations require that any work you do be directly related to your field of study. Since you studied Packaging Engineering, you should ensure that the business you start aligns with that field. Selling packaging products could be considered related, but it’s advisable to keep documentation that shows the connection.
You can sell through platforms like Etsy, Amazon, or eBay without forming a formal company initially, but there are benefits to forming a business entity such as limited liability and clearer tax implications. If you decide to register a business, you can choose structures like a sole proprietorship, LLC, or corporation, depending on your needs and plans for the future.
Regarding taxes, any income you earn through your online shop must be reported on your tax return. You will need to keep track of your income and expenses and may need to pay self-employment tax. If you’re unsure about the tax details or how to structure your business, consulting with a tax professional is a good idea to ensure compliance with both immigration and tax laws.
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