You recently finished your studies in the United States, gaining new knowledge and expertise in your subject of study. You might be wondering if you can look for chances as a freelancer or consultant when you start your post-study job time. The emphatic answer is yes, but there are several rules and factors to take into account. During your Optional Practical Training (OPT) or STEM OPT extension, we'll delve into the world of freelancing and consulting and shine a light on what you need to know to make the most of this exciting time in your career.
1. Relevance to Study Area
Relevance should be your priority when thinking about consulting or freelancing during your post-study work time. Your work ought to be closely related to your area of study. The purpose of OPT and STEM OPT is to supplement your academic education with real-world exposure. Therefore, you should apply the abilities and knowledge you learned in school to your consulting or freelancing business.
2. permission and reporting
Make sure your OPT or STEM OPT is authorized before you start consulting or freelancing. This entails possessing an Employment Authorization Document (EAD) issued by US Citizenship and Immigration Services (USCIS) that has been accepted. Additionally, it's essential to notify your Designated School Official (DSO) about your consulting or freelancing activity as required by the rules. These actions guarantee that you adhere to immigration laws.
3. Preserving the Full-Time Status
You must work full-time, which equates to at least 20 hours per week, whether you're in the 12-month initial OPT period or the 24-month STEM OPT extension. To keep your legal status, freelance or consulting employment must equal or exceed these minimal hours. This not only maintains you in compliance but also guarantees that you are taking full advantage of your opportunity for post-study employment.
4. Monitoring and Record-Keeping
Your best friend in the world of consulting and freelancing is diligent record-keeping. Maintain thorough records of your work, including information about the project, the client, the hours worked, and payment receipts. In addition to assisting you in remaining compliant, this paperwork is a useful tool when it comes time to file reports as specified by the laws. It serves as your backup plan in case of audits or inquiries.
5. Entrepreneurship and Self-Employment
It's entirely possible to establish your own business as a freelancer or consultant if you're thinking about making the transition to self-employment, but there are some additional factors to take into account. To be eligible for self-employment under your OPT or STEM OPT, you must fulfill certain prerequisites. This can entail making the business relevant to your academic discipline and continuing to work on your business endeavors full-time.
6. Taxes and Income Reporting
Your revenue as a consultant or freelancer will probably come from a variety of sources. It's critical to appropriately record your income and adhere to U.S. tax laws. This can entail declaring yourself as self-employed and being aware of your tax liabilities. It's advised to speak with a tax expert who can walk you through the nuances of the American tax code to manage this part of the process without any hiccups.
7. Time and Capacity
While consulting and freelancing can be exciting ways to launch your career, it's important to pay attention to the time. The amount of work you do during your post-study work time should not go above the authorized OPT or STEM OPT period. Be cautious of any restrictions on the number of days you can be unemployed since going over these limits could jeopardize your eligibility.
