Startup Success: How to Launch Your Business on STEM OPT

The STEM Optional Practical Training (OPT) extension offers international students in the U.S. a fantastic opportunity to gain hands-on experience in their field of study. While many use this time to work for established companies, more and more recent graduates are exploring the exciting path of entrepreneurship. If you’re dreaming about launching your own business while on STEM OPT, here’s a guide to help you navigate the possibilities and regulations.

Understanding STEM OPT

The STEM OPT extension allows recent graduates in science, technology, engineering, and mathematics fields to extend their work authorization for up to 24 months after their 1 year OPT. To be eligible, you need a degree in a designated STEM field (refer to ICE for a reviewed and updated list of STEM I-20 codes that qualify) and must be employed by a company enrolled in the E-Verify program. The application process for STEM OPT includes filing Form I-765, Form I-983, and Form I-20 endorsed by your Designated School Official (DSO) within the past 60 days, plus a copy of your STEM degree.

Requirements for Starting a Business on STEM OPT

Yes, you can start your own business on STEM OPT, but there are some rules to follow:

• Training Plan: Whether your employer is your startup or another company, they must comply with the training plan outlined in Form I-983. This plan should explain how your work relates to your STEM degree.
• E-Verify: Your startup must be enrolled in the E-Verify program.
• Fair Compensation: Your startup can either offer you a salary comparable to what similar U.S. workers earn, or you can meet the compensation requirement through equity in the company.

Meeting these requirements is crucial to maintaining your visa status and avoiding legal issues.

Benefits & Challenges of Starting a Business on STEM OPT

While there are a few obstacles to starting a business on STEM OPT, there are also many benefits to note that make the process worthwhile. Thriving as an international graduate looking to launch a startup is possible.

Potential ​​Benefits

• Potential for innovation
• Job creation
• Personal and professional growth
• Application of academic knowledge in real-world scenarios
• Contribution to your field and broader economic development

Potential Challenges

• Navigating regulatory compliance
• Engaging potential investors
• Maintaining visa status
• Balancing business responsibilities with stringent immigration requirements

Options After STEM OPT

After STEM OPT expires, international graduates have several options to consider for extending their stay in the U.S. One common path is applying for an H-1B visa, which allows employers to sponsor specialized workers. If not selected in the H-1B lottery, graduates might explore other visa options such as the O-1 visa for individuals with extraordinary abilities or the E-2 visa for investors. Additionally, those interested in entrepreneurship can consider starting their own company and applying for an appropriate visa that supports business ventures. For a detailed guide on visa options and strategies for post-STEM OPT success, you can refer to our other article, Visa Ventures: Your Guide to U.S. Start-Up Success, for more information.