If you’re a Canadian or Mexican citizen considering a move to the U.S. under a TN visa, it’s important to know that self-employment is generally not allowed. This blog explains what counts as self-employment, what is considered acceptable employment, and what options exist if you’re hoping to run your own business in the U.S.
Table of Contents
- 1. What Is a TN Visa?
- 2. General Rule: No Self-Employment
- 3. What Counts as Self-Employment?
- 4. What Is Allowed?
- 5. Alternatives for Business Owners
- 6. Conclusion
- 7. Sources
1. What Is a TN Visa?
The TN visa is a U.S. nonimmigrant work visa for Canadian and Mexican citizens under the USMCA (formerly NAFTA). It allows certain professionals to work in the U.S. temporarily, as long as:
- The job is listed under approved TN professions;
- The job is prearranged with a U.S. employer;
- The applicant meets the education or licensing requirements;
- The job offer is not self-employment.
2. General Rule: No Self-Employment
Under U.S. immigration rules, self-employment is not allowed for TN visa holders. A TN applicant must have a prearranged job with a separate U.S. employer or client. The U.S. government defines self-employment as:
A situation where the TN visa holder controls or owns the company they work for, either as a sole proprietor or controlling shareholder.
3. What Counts as Self-Employment?
A. Legal Ownership or Control
You’re likely to be considered self-employed if:
- You own all or most of the U.S. business offering the job;
- You have full control of the company’s operations;
- You are the main or only source of income from that company.
Example: You start a U.S. LLC to provide IT services and offer yourself a contract. This will be seen as self-employment and not allowed under a TN visa.
B. Creating a Business for TN Entry
If it appears that a company was created just to support your TN visa, immigration may deny the application.
Red Flags:
- You created the company or arranged the job yourself;
- The business doesn’t have other employees or contracts;
- You are the only person benefitting from the income.
4. What Is Allowed?
There are situations where independent work may still be valid under a TN visa, as long as you don’t control the company offering the job.
A. Contract Work for U.S. Entities
If you are working under a contract with a U.S. company, and you don’t own or control that company, this may be allowed.
Example: You live in Canada and have your own consulting company. A U.S. business offers you a contract. As long as the business is not yours and the services are prearranged, this can work.
B. Independent Contractor with a U.S. Client
Even if you’re a contractor, the key is that the U.S. client is not your own company. A formal contract must be in place, and the business activities must be clearly temporary and professional.
5. Alternatives for Business Owners
If you want to start a business or invest in the U.S., consider the following visa options:
| Visa Type | Who It’s For | Key Notes |
|---|---|---|
| E-2 Visa | Treaty investors | You invest a substantial amount in a U.S. business. |
| L-1 Visa | Company transfers | You transfer from a foreign company to a U.S. branch you control. |
| B-1 Visa (Limited Use) | Short-term business | Only allows visits, not employment or active business operation. |
6. Conclusion
To qualify for a TN visa, you must work for a separate U.S. employer, not for yourself. Even if your business is legally separate on paper, if you control it, it can disqualify your TN application.
Allowed:
- Working for a U.S. company, you don’t control
- Performing services under a signed contract
Not Allowed:
- Running your own business in the U.S.
- Working for a company you created or control
When in doubt, speak with a licensed U.S. immigration lawyer to review your situation.
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Sources
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