What Happens to Your Work Authorization When Switching from F-1 to E-2?

Published: February 17, 2025

A Congressional Research Service (CRS) report revealed 445,418 visa issuances for the F-1 visa category in FY 2023. F-1 visas enable full-time international students to pursue full-time academic studies in the US. 

The Student and Exchange Visitors Program (SEVP) under U.S. Immigration and Customs Enforcement (ICE) must approve the school to accept international students on an F-1 visa. Once accepted to an SEVP-approved school, you’ll receive a Certificate of Eligibility for Nonimmigrant Student status.

F-1 visas come with certain rules and restrictions. Unsurprisingly, many international students holding an F-1 visa explore the possibility of switching to an E-2 visa category due to its more favorable conditions, particularly in terms of business ownership and employment authorization, 

Understanding how transitioning from F-1 to E-2 visa works and impacts work authorization is critical for ensuring compliance with US immigration laws. As a first step, ALG Lawyers outlines the process to prepare you for what to expect and facilitate a smooth transition. 

Understanding Work Authorization for F-1 Visas

Generally, foreign nationals need an F or M visa to study as a full-time student in the US. Those pursuing academic studies or language training programs are categorized as F-1 nonimmigrants. 

Foreign students holding an F-1 visa must cover all expenses without relying on paid employment. Still, F-1 visa holders have limited rights to do paid work. The following are key regulations for on-campus jobs that commonly apply to F-1 students: 

• They can work in qualifying on-campus jobs, provided they don’t take a job away from a US citizen or green card holder.
• They’re eligible for on-campus employment no earlier than 30 days before their program of study begins.
• They are authorized to work a maximum of 20 hours per week during academic instruction and full-time during official school breaks and vacation periods. 
• They must report their employment to the designated school official (DSO) and acquire a certification letter for their Social Security Number. 

After at least one full academic year, F-1 students can work off campus. However, they must obtain authorization from the US Citizenship and Immigration Services (USCIS) or DSO. 

A DSO can authorize F-1 students to participate in Curricular Practical Training (CPT). Meanwhile, USCIS grants permission for limited types of off-campus employment, such as the following: 

• Optional practical training (OPT) during or after the completion of an academic program
• International organization internships

US immigration laws also allow off-campus employment not necessarily related to their field of study but due to severe economic hardship caused by unforeseen situations beyond one’s control. Generally, off-campus work is only recommended if the on-campus employment opportunities aren’t sufficient to meet the F-1 student’s financial needs. 

How Your Work Permit Changes When Switching from F-1 to E-2

Nonimmigrant visas authorize foreign nationals to enter the US for a temporary period and specific purpose. Both F-1 and E-2 are nonimmigrant visa categories, meaning they don’t provide a direct path to a green card or lawful permanent residency (LPR) status. 

However, E-2 visas can be appealing for F-1 visa holders interested in entrepreneurship. Employment opportunities for F-1 visa holders are subject to certain restrictions. Below are some changes you can expect in your work authorization when switching from an F-1 to an E-2 nonimmigrant visa classification: 

Self-employment 

The ability to engage in self-employment is one of the notable changes when switching to an E-2 visa. Unlike the F-1 visa, which permits self-employment only under specific conditions through OPT, E-2 visa holders can own and actively manage a business. An E-2 visa gives you greater autonomy in choosing and expanding your business ventures. 

Greater flexibility

The F-2 visa imposes restrictions on the type of work and even hours permitted for international students. In contrast, an E-2 visa enables you to work full-time for your enterprise. It provides the legal right to work in the business you invested in, so you don’t need an additional work permit. 

You can also work for other businesses, provided the employment directly supports your investment activity. This flexibility allows you to have greater control over your employment in the US. 

Work authorization for dependents

Eligible spouses of E-2 visa holders can acquire work authorization to secure employment in the US. They can work in any industry without being subject to restrictions. But it’s worth noting that some employers may still request proof of work eligibility to verify your legal right to work in the US.

Essential Considerations for a Successful Transition

An E-2 status change allows you to switch from your current non-immigrant visa category, such as the F-1 visa, to an E-2 visa while in the US. It eliminates the need to leave the US and reapply for the visa again at a consulate abroad. Careful consideration of the following factors is necessary to ensure a successful transition: 

Maintaining a valid status

Maintaining a lawful presence in the US is critical before transitioning to a different nonimmigrant visa. As an F-1 student, you can lose your status if you work illegally or don’t enroll in a full-time course load every semester. 

Failing to adhere to what the law requires can jeopardize your immigration status. It can further impact your immigration applications in the future as well as the ability to stay in the US. Thus, exercise due diligence in maintaining a valid status before changing your visa classification. 

Investment requirements

Actively investing a substantial amount in a real business in the US is a requirement to be eligible for an E-2 visa. Once invested, the money must be genuinely at risk, and you cannot withdraw it whenever you want. Moreover, you must actively manage the business, own at least 50 percent, be involved in significant decisions, and oversee daily operations. 

Detailed business plan

Another essential consideration is a comprehensive business plan. Its purpose is to attract business investors or partners and provide compelling evidence to adjudicators who will review and approve your visa application. Remember, it’s not enough to invest a significant amount of money. You must also demonstrate that the investment is viable and likely to succeed. 

Ensure a Smooth Immigration Process With ALG Lawyers

When done accurately, switching from an F-1 to an E-2 visa opens a range of immigration benefits and opportunities. 

However, the transition is complex and often requires a substantial financial investment to ensure its operation and viability. Staying compliant with F-1 visa regulations throughout the transition process is also essential. Failure to maintain a valid status could jeopardize your eligibility for the E-2 visa. 

You can ensure a smooth immigration process and enhance your chances of success with proper assistance and direction from an experienced Los Angeles immigration lawyer. Connect with our team at ALG Lawyers to schedule your first consultation.