Can undocumented immigrants work in the U.S.?

Undocumented immigrants cannot be formally employed by a U.S. employer without an Employment Authorization Document (EAD). However, self-employment, freelancing, and independent contracting are different — they are not considered employment in the traditional sense. ITIN holders can legally earn self-employment income, report it on taxes, and pay self-employment tax using their ITIN.

Can DACA recipients work legally?

Yes. Approved DACA recipients receive an Employment Authorization Document (EAD) that allows them to work legally for any U.S. employer. DACA recipients can also apply for a Social Security Number, get a driver's license in all 50 states, and are eligible for the same employment rights as other authorized workers.

Can I freelance without a work permit?

Freelancing and self-employment exist in a gray area. Many undocumented immigrants earn income through independent contracting — writing, design, translation, tutoring, construction, childcare, and other services. This income must be reported to the IRS using an ITIN. Clients who pay you more than $600 in a year may issue a 1099 form. Consult an immigration attorney to understand the risks and responsibilities in your specific situation.

Can I start a business with an ITIN?

Yes. Undocumented immigrants can register and operate a business in the U.S. You can form an LLC or sole proprietorship using your ITIN and apply for an EIN (Employer Identification Number) from the IRS for business taxes. An ITIN or EIN is sufficient to open a business bank account, accept payments, and file business taxes. No Social Security Number or immigration status is required to start a business.

How do I pay taxes as a freelancer without an SSN?

Freelancers and self-employed ITIN holders file taxes using their ITIN in place of an SSN on Form 1040 and Schedule C (for self-employment income). You will pay self-employment tax (15.3% on net earnings) plus income tax. Keep track of all income and business expenses. If you expect to owe more than $1,000 in taxes, you should make quarterly estimated tax payments to avoid penalties.

Which freelance platforms can undocumented immigrants use?

Upwork, Fiverr, and many other freelance platforms allow users to sign up with an ITIN instead of an SSN for tax purposes. When filling out the W-9 or W-8 tax form on these platforms, enter your ITIN in the taxpayer ID field. Income earned through these platforms is taxable and must be reported using your ITIN when you file your annual tax return.

Jobs & Freelancing for Undocumented Immigrants

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

⚡ Without DACA / 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 pay 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. You can use free tools like Wave, PayPal, or a simple Word/Google Docs template. Clients may pay you via check, PayPal, Venmo, Zelle, or bank transfer.

Complete a W-9 When Asked

When a client asks for a W-9 form (which is how they report payments to the IRS), fill it out using your ITIN in place of the SSN field. This is completely legal and standard practice.

File Taxes Each Year

If you earn more than $400 in self-employment income in a year, you are required to 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 — you pay them yourself. Set aside 25–30% of every payment you receive for taxes. This covers self-employment tax (15.3%) plus income tax. Pay quarterly estimated taxes to the IRS to avoid penalties.

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 holders.

🎨

Fiverr

Create "gigs" offering specific services at set prices. Good for designers, writers, translators, voice artists, and digital services.

📊

Direct Clients

The highest-paying path. Market yourself through LinkedIn, a personal website, or word of mouth. Use your finance degree or other skills to find consulting clients directly.

🏠

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. Pay taxes on earnings 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 taxes as a sole proprietor)

For a sole proprietorship — the simplest business structure — you use your ITIN to file taxes and report business income on Schedule C of your tax return.

Get an EIN (Employer Identification Number)

An EIN is a tax ID for your business, separate from your personal ITIN. You can apply for an EIN for free at IRS.gov using your ITIN. An EIN is required if you form an LLC or hire employees, and is also used on W-9s and business bank account applications.

Register Your Business (Optional for Sole Props)

Sole proprietors do not need to formally register in most states. If you form an LLC, you register with your state's Secretary of State office. An LLC offers liability protection — your personal assets are separate 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 create problems for 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 specifically for undocumented entrepreneurs and freelancers — including contract templates, ITIN guides, business start-up resources, and even small business grants for undocumented founders.