Q: Can I set up an LLC for F-1 OPT work and be a 1099 contractor?

A: It is fine to be self employed for regular OPT as long as your degree is related to what the business does. It is always a good idea to set up a company and take any other steps to show that your business is legitimate. (eg. set up a website, operating agreement, EIN, etc.). Stem OPT is much more complicated. The company must be E verified and you also need a training plan and supervisor. For Stem OPT, you must follow certain rules.

A: Setting up an LLC and working as a 1099 contractor while on F-1 OPT is generally not compliant with USCIS guidelines. OPT regulations require that your employment be directly related to your degree, supervised, and involve a clear employer-employee relationship. Forming an LLC positions you as self-employed, which USCIS typically does not permit under standard OPT guidelines.

Instead of forming your own LLC, your safest alternative is to request the company hire you directly as a W-2 employee. This arrangement explicitly demonstrates a clear, direct supervisory relationship and clearly meets USCIS compliance requirements. If the company insists on a contracting structure, you might explore using a staffing or consulting agency as an intermediary. This agency would employ you directly and bill the manufacturing company, satisfying USCIS employment rules.

For maintaining OPT and STEM OPT compliance, it is important to have documentation clearly outlining the employer's supervision, job duties, and connection to your field of study. Always consult with your university’s international office or an immigration attorney before finalizing any arrangement. Taking these careful steps ensures your status remains secure and aligns your professional goals with legal requirements.