What Are Your Work Options?
Your work options in the U.S. depend on your current immigration status. Here is an honest, clear breakdown:
✅ With DACA (or TPS)
- Legally work for any employer
- No employer sponsorship required
- Can be hired like any U.S. citizen
- Employer cannot refuse you due to DACA status
- Must renew EAD before it expires
- Can also freelance or start a business
⚡ ITIN Only / Undocumented
- Cannot be a traditional W-2 employee
- Can legally freelance as independent contractor
- Can start and own a business
- Can join a worker cooperative
- Must use ITIN to report income and pay taxes
- Must file taxes on all income over $400/year
The Key Legal Distinction
U.S. law requires work authorization for employees (W-2 workers who complete an I-9 form). It does not require work authorization for independent contractors — freelancers and self-employed individuals. Employers are not required to verify a contractor's immigration status or ask for an I-9 when hiring a contractor.
Freelancing & Independent Contracting
Freelancing means providing services to clients under a contract, as a self-employed individual — not as an employee. This is a legal path to income for undocumented immigrants. Many professionals work this way: designers, developers, writers, translators, consultants, marketers, photographers, and many more.
How It Works in Practice
Get Your ITIN
Your ITIN is your tax ID number for freelancing. You will use it on W-9 forms (which clients ask you to fill out before paying you) and when filing your annual tax return reporting self-employment income.
Define Your Service and Set Your Rate
Decide what you offer — graphic design, finance consulting, translation, web development, writing, tutoring, etc. Research market rates on platforms like Upwork to understand what others charge.
Use a Written Contract
Always work with a written contract that states your scope of work, payment terms, and timeline. This protects you legally and professionally. Free contract templates are available at immigrantsrising.org.
Send an Invoice and Get Paid
Send clients a professional invoice after completing work. Free tools like Wave, PayPal, or a simple Google Docs template work well. Clients may pay via check, PayPal, Venmo, Zelle, or bank transfer.
Complete a W-9 When Asked
When a client asks for a W-9 form (how they report payments to the IRS), fill it out using your ITIN in the taxpayer ID field. This is completely legal and standard practice for ITIN holders.
File Taxes Each Year
If you earn more than $400 in self-employment income in a year, you must file a tax return and pay self-employment taxes. Use your ITIN. Filing taxes builds your official income record — which strengthens any future immigration applications — and keeps your ITIN active.
💡 Set Aside 25–30% for Taxes
As a self-employed freelancer, taxes are not withheld from your payments. Set aside 25–30% of every payment for taxes. This covers self-employment tax (15.3%) plus income tax. Pay quarterly estimated taxes to the IRS to avoid penalties at year end.
Freelance Platforms & Income Sources
Upwork
Global freelance marketplace for tech, design, writing, finance, and more. Create a profile, set your rate, and apply for projects. Accepts ITIN for tax purposes.
Fiverr
Create "gigs" offering specific services at set prices. Good for designers, writers, translators, voice artists, and digital services. Accepts ITIN on tax forms.
Direct Clients
The highest-paying path. Market yourself through LinkedIn, a personal website, or word of mouth. Consulting clients directly avoids platform fees entirely.
Local Services
Landscaping, cleaning, tutoring, childcare, home repair, catering. These are typically paid in cash or check and reported on taxes using your ITIN.
TaskRabbit / Thumbtack
Platforms for handyman work, furniture assembly, moving, and other tasks. Report all earnings on your taxes using your ITIN.
Worker Cooperatives
A business owned and managed by its members. Cooperatives do not require I-9 verification for members. Find cooperatives at usa.coop or democracyatwork.info.
Starting Your Own Business
Undocumented immigrants can legally start, own, and operate a business in the United States. You do not need work authorization or citizenship to be a business owner. Here is what you need:
Get an ITIN (for sole proprietorship taxes)
For a sole proprietorship — the simplest structure — you use your ITIN to file taxes and report business income on Schedule C of your tax return. No separate registration needed to start.
Get an EIN (Employer Identification Number)
An EIN is a tax ID for your business, separate from your personal ITIN. Apply for one free at IRS.gov using your ITIN. An EIN is required for LLCs, is used on W-9s, and is needed for most business bank account applications.
Register Your Business (Optional for Sole Props)
Sole proprietors don't need to formally register in most states. If you form an LLC, register with your state's Secretary of State office. An LLC separates your personal assets from business liabilities.
Open a Business Bank Account
Use your EIN and ITIN to open a business checking account at Chase or Bank of America. Keeping business and personal finances separate is important for taxes and professionalism.
⚠ A Note on DACA and Job Offers
If you are waiting for DACA and a company wants to hire you as a traditional employee, you will need a valid EAD before you can legally start. Do not complete an I-9 form or accept W-2 employment without authorization — this can affect future immigration applications. Freelance or consulting work as an independent contractor is a legal alternative while you wait.
💡 Immigrants Rising — Free Resource
Immigrants Rising (immigrantsrising.org) offers a free comprehensive toolkit for undocumented entrepreneurs and freelancers — including contract templates, ITIN guides, business start-up resources, and small business grants for undocumented founders.