I'm a nonresident for tax purposes on OPT after graduation, looking to do freelance independent contractor work related to my major. Do I have to open my own LLC, and what tax form do I fill out since W-9 seems to be for residents?
You are legally allowed to do freelance or independent contractor work on standard post-completion OPT. You do not need to form an LLC to do this. Because you are a tax nonresident, you will give your clients Form W-8BEN instead of Form W-9.
You can cross this worry off your list. You did the right thing by checking the tax rules first. Working as a contractor is a standard path on OPT, and the IRS provides specific forms for nonresidents to handle this smoothly.
You can work as an independent contractor under a category called "work for hire." This means you perform services based on a contract rather than an employment relationship.
To qualify, the freelance work must be directly related to your major field of study. You must also work a total of at least 20 hours per week.
Note on STEM OPT: This path only works for your standard 12-month OPT. If you later apply for a 24-month STEM OPT extension, you cannot use labor for hire or sole proprietorships. STEM OPT requires a strict employer-employee relationship.
You are correct that Form W-9 is for residents. It is used only by U.S. citizens, green card holders, and people who pass the Substantial Presence Test.
Because you are a nonresident for tax purposes, you must complete Form W-8BEN instead.
When a client asks for a W-9 to set you up as a contractor, give them the W-8BEN. This form proves to the payer that you are not a U.S. tax resident and that you fall under nonresident tax rules.
