How to earn money working for yourself without a work permit

This page is about the legal side of earning money on your own. How to set up a business is on Can I start a business without a Social Security number? This is general information, not legal or tax advice.

Can I earn money without a work permit?

Often, yes, by working for yourself. Here is why.

Federal law makes it illegal for an employer to knowingly hire someone who is not allowed to work, and employers must check every new employee's papers on Form I-9. But the federal rules say an "employee" does not include an independent contractor. USCIS tells businesses they do not fill out Form I-9 for independent contractors.

So freelancing, contracting and owning your own business are ways many people earn a living without a work permit.

What makes me a real independent contractor?

What you call yourself does not decide it. Federal rules look at each case. They ask whether you:

• Bring your own tools or materials
• Offer your services to the public
• Work for more than one client at the same time
• Can make or lose money depending on how you run your work
• Pay for your own workspace or equipment
• Decide the order of the work and your own hours

The more of these are true, the more you look like a business of your own. A client should care about the result, not control how you do every step.

What does California's AB 5 law mean for me?

California has its own test, often called the ABC test. AB 5 became law on January 1, 2020, and the test is now in Labor Code section 2775. Under it, you are treated as an employee unless the business that hires you can show all three:

• A. You are free from its control and direction, on paper and in real life.
• B. Your work is outside the usual kind of work that business does.
• C. You usually run your own independent trade or business doing that kind of work.

There are exceptions. One covers business to business deals, when you run a real business with its own location, any required business license, a written contract, your own tools and your own clients.

Why this matters: a California employee gets strong protections, like minimum wage and sick days. But federal hiring rules apply to employees. If a client directs your work like a boss, ask a workers' rights clinic and an immigration attorney before you go on. See Am I an employee or an independent contractor?

Do I have to tell clients my immigration status?

A business does not fill out Form I-9 for its independent contractors. Most clients will ask you for Form W-9 so they can report what they paid you. The W-9 asks for your tax number. If you live in the United States and cannot get a Social Security number, your tax number is your ITIN.

Never use a Social Security number that is not yours. If you have done that in the past, tell your attorney.

How do I pay taxes when I work for myself?

You are self employed when you run your own work as a sole owner or an independent contractor. The IRS says:

• You must file a tax return if your net earnings from self employment are $400 or more.
• You pay self employment tax of 15.3%: 12.4% for Social Security and 2.9% for Medicare. You figure it on Schedule SE, filed with your Form 1040.
• You can use an ITIN to file and pay.
• If you expect to owe $1,000 or more when you file, you generally must pay estimated tax during the year with Form 1040-ES.
• Forms from clients: for payments made in 2026, a business that pays you $2,000 or more in a year for your services generally sends you Form 1099-NEC (IRS instructions). Payment apps send Form 1099-K when you get more than $20,000 in more than 200 payments (IRS). You must report all your income, whether or not you get a form.

California has its own return. The state tax agency says Californians without a Social Security number can use an ITIN to file it.

Keep a simple record of every payment you get and every work cost you pay. Free tax help can show you how. See Free tax help and filing with an ITIN and How to pay taxes on self employment income with an ITIN. To see if you can get state tax credits, read CalEITC and the Young Child Tax Credit with an ITIN.

Is it safe to get an ITIN?

An ITIN is only for taxes. The IRS says it does not give you immigration status and does not give you permission to work. The IRS gives ITINs regardless of immigration status.

There are open court cases about the IRS sharing some tax information with immigration agents. We track them on What is known about tax records and immigration. If you are worried, talk with a trusted immigration attorney or DOJ accredited representative before you apply.

What kind of work can I start with?

Start with what you already do well. Many people begin with skills like tutoring, translating, design, writing, cooking, cleaning, repairs or caring for others, and grow from there. Some work needs a state license first. Check Professional licenses without a Social Security number.

Ask people in your field how they find clients and set their prices. Then pick one service, one price and one way to get paid, and start small.

Who can help?

You do not have to figure this out alone. Contact these groups to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• Free immigration legal help near East Palo Alto and in Santa Clara County: see Free legal help in the Bay Area, and check anyone first with Find a lawyer you can trust.
• Free tax help: see Free tax help and filing with an ITIN.
• Business coaching: see Free small business coaching in the Bay Area.
• ImmigrantBizHub: online business training it says is open to immigrants of all backgrounds, regardless of status. Ask about cost when you sign up. immigrantbizhub.org
• Immigrants Rising: a nonprofit with a free guide on working for yourself. Working for Yourself (Immigrants Rising)

Is there a checklist I can print?