F-1 to founder: OPT, STEM OPT, and CPT for students starting a company in SF (2026)

A first-party, source-linked walkthrough of CPT, OPT, and the STEM OPT extension for F-1 students building a startup in San Francisco.

International students on F-1 status can legally build toward a startup, but the rules differ sharply depending on whether they are unpaid founders, on OPT, or on the STEM OPT extension, and self-employment is only allowed once the student holds valid work authorization directly related to their field of study (USCIS). The short version: F-1 students can found and invest in a company at any time, but generally cannot draw a salary, take equity as compensation for work performed, or actively run day-to-day operations until they have CPT, OPT, or the STEM OPT extension in place (Mintz). This guide walks through each phase, the timelines, and what happens after OPT ends, verified September 2026. This is general information, not legal advice, see the closing section before acting.

Can an F-1 student start or own a company while studying?

Yes, forming and owning a company is different from working for it. An F-1 student can incorporate a business, hold shares, meet with investors, negotiate contracts, do research, and build a business plan without work authorization, because those activities are not considered "employment" (Darden/visalaw FAQ). What crosses the line into unauthorized employment is performing the substantive work of the business, building the product, selling it, marketing it, or managing a team, without CPT, OPT, or STEM OPT authorization (Darden/visalaw FAQ). A student without CPT or OPT also cannot earn a salary or receive dividends from the company they founded, even if they are simply "helping out" unpaid on tasks that amount to running the business (Mintz).

What is CPT and can it be used to work on a startup?

Curricular Practical Training (CPT) is off-campus work authorization tied directly to an established part of the academic curriculum, such as a required internship or cooperative education component (ICE SEVP). CPT must be authorized by a Designated School Official (DSO) before the student begins work, requires a signed cooperative agreement or employer letter, and can be full-time or part-time (ICE SEVP). CPT occurs before the program end date on the Form I-20, and one year or more of full-time CPT at the same degree level eliminates eligibility for OPT at that level (USCIS Policy Manual). In August 2026, ICE issued guidance warning schools about a rise in CPT authorizations that do not genuinely tie to an established curriculum requirement, so DSOs are now scrutinizing CPT-for-startup arrangements more closely (ICE Broadcast Message 2608-02). In practice, CPT is rarely a realistic path to running your own company, since it requires a genuine curricular tie and, for most students, an employer other than themselves.

How does post-completion OPT work for a founder?

Post-completion OPT gives F-1 students up to 12 months of work authorization tied to their major field of study, usable after finishing a degree (USCIS). Once approved, employment must be at least 20 hours per week to count as full-time, and unemployment during this period is capped at 90 days total (Study in the States, verified September 2026). Self-employment is allowed on post-completion OPT, meaning a founder can be paid by their own startup, as long as the work is directly related to the degree field and the founder can document the business is bona fide, for example through business licenses, a business plan, or evidence of work performed (USCIS Policy Manual; Immigration America summary). This is the stage where most F-1 founders in SF actually start paying themselves and hiring.

What about pre-completion OPT?

Pre-completion OPT is available after one full academic year of full-time enrollment and can be used before graduation, but it caps work at 20 hours per week while school is in session (full-time is allowed only when school is not in session), and any pre-completion OPT used is subtracted from the 12 months available for post-completion OPT (USCIS). Most founder-track students preserve their full 12 months for after graduation rather than using pre-completion OPT.

What is the STEM OPT extension, and why is it hard for solo founders?

Students with a qualifying STEM degree from an SEVP-certified, accredited institution can apply for a 24-month extension of post-completion OPT, for a combined total of up to 36 months of work authorization (USCIS). Two requirements make STEM OPT structurally difficult for someone who is simply the founder of their own startup:

First, the employer must be enrolled in E-Verify (E-Verify.gov). A newly formed one-person startup can enroll in E-Verify, but the bigger obstacle is the second requirement.

Second, the student and employer must jointly complete Form I-983, the STEM OPT training plan, and the employer, not the student, must complete and sign Sections 3 through 6, certifying the training program, supervision, and evaluations (Study in the States). DHS guidance is explicit that "STEM OPT students may participate in entrepreneurial ventures. However, they may not fill out their own Form I-983, Sections 3 to 6, nor act as their own employer for the purposes of the form" (Study in the States). In practice this means a sole founder cannot self-certify their own training plan. Founders who want STEM OPT for their startup generally need a genuine employer-employee relationship with actual supervision and control, for example a board of directors, an independent officer, or an investor-appointed manager who can sign the I-983 and exercise real oversight, not just a rubber-stamp co-founder. This is a fact-specific structuring question best discussed with an immigration attorney and the company's counsel together.

What is cap-gap, and how does it affect a founder heading toward H-1B?

Cap-gap is a regulatory bridge that extends F-1 status and, if applicable, OPT work authorization for students who have a timely filed, pending or approved cap-subject H-1B petition requesting a change of status, covering the period between the end of OPT and April 1 (or the H-1B validity start date, whichever is earlier) of the relevant fiscal year (USCIS). Cap-gap only applies if an employer files a cap-subject H-1B petition on the founder's behalf, which raises the same employer-employee relationship question described above for a founder's own company.

What happens after OPT or STEM OPT ends?

A few main options exist for a founder trying to stay in the US past OPT:

H-1B cap lottery. Employers register beneficiaries and pay a $215 registration fee during the initial registration window, and USCIS runs a lottery if registrations exceed the annual cap (USCIS). A weighted selection rule took effect February 27, 2026, and was in place for the FY 2027 cap season, meaning USCIS generally favors registrations tied to higher OEWS prevailing wage levels rather than a purely random draw (USCIS; Federal Register final rule). USCIS confirmed it received enough registrations to reach the FY 2027 cap (USCIS). Because H-1B requires an employer sponsor and a specialty-occupation role, a self-sponsored H-1B for one's own startup involves the same bona fide employer-employee questions raised above. See our H-1B vs O-1 for founders comparison for how these tradeoffs play out.
O-1A extraordinary ability visa. Many founders pursue O-1A instead of relying on the H-1B lottery, since it does not require a cap lottery and can support self-petitioning structures with the right corporate governance. See our O-1A guide for startup founders for eligibility criteria.
Cap-exempt H-1B. Certain employers, including institutions of higher education, nonprofit entities affiliated with a university, and nonprofit or governmental research organizations, can sponsor H-1B workers without going through the annual lottery (USCIS H-1B Cap Season page). This is rarely a fit for a founder's own for-profit startup but sometimes matters for a co-founder who holds a research or teaching role.

If you are weighing these paths against each other, our founder visa decision tree walks through the sequencing.

CPT vs OPT vs STEM OPT at a glance

|---|---|---|---|

| Self-employment allowed | Generally no, requires employer cooperative agreement | Yes, if directly related to field and bona fide | Allowed, but employer must complete Form I-983 (student cannot self-certify) |

Sources: ICE SEVP, USCIS OPT, USCIS STEM OPT, Study in the States unemployment counter.

When do you need to file Form I-765, and what does it cost?

Form I-765 for post-completion OPT can be filed as early as 90 days before the program end date and no later than 60 days after it, and USCIS will not accept applications filed 60 days or more after the program end date (USC OIS, citing USCIS guidance). Filing early matters because unauthorized gaps in status are not forgiving, and STEM OPT applications should be filed before the current post-completion OPT expires. Check the USCIS I-765 page for the current form edition, and confirm the current fee on the USCIS Fee Calculator or G-1055 Fee Schedule before filing, since USCIS fees are adjusted periodically and litigation can affect which fees apply to which applicants.

What should a founder actually do before filing anything?

Talk to your school's DSO first, since they authorize CPT, recommend OPT and STEM OPT in SEVIS, and can flag maintenance-of-status issues specific to your program. Then talk to an immigration attorney before structuring equity, board seats, or an employer-employee relationship intended to support STEM OPT, cap-gap, H-1B, or O-1A, since small structuring choices (who controls hiring and firing, who signs your I-983, whether the company can show it directs your work) can determine whether a filing is approvable. This guide is for general informational purposes only, is not legal advice, and reflects rules that change. Confirm every number and deadline directly with your DSO and an immigration attorney before you rely on it.

Why does San Francisco matter for any of this?

None of the F-1 rules above change based on location, but SF-based founders face two practical wrinkles worth flagging. First, many SF accelerators and pre-seed programs expect founders to be full-time and paid from day one, which means a founder without OPT or STEM OPT in place cannot legally accept that arrangement yet, even informally. Second, SF's investor and legal ecosystem is used to structuring genuine board oversight and outside directors for cap-table and governance reasons anyway, which can make it easier (though never automatic) to build the kind of real employer-employee relationship STEM OPT and H-1B sponsorship require. None of this changes the underlying federal rules, and no accelerator or investor letter substitutes for USCIS approval.

Frequently asked questions

See the FAQ list below.

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