TN Visa & Self-Employment
As of June 2025, USCIS formally banned self-employment on TN visas. Here's what that means and what your alternatives are.
The Rule
In its June 2025 policy update, USCIS formally codified what had been informal guidance for years: self-employment is not permitted on TN visa status.
TN status requires employment with a bona fide U.S.-based employer. The employer must be an independent entity that controls the work — not a company owned or controlled by the TN visa holder themselves.
This means you cannot start a company in the US and have that company sponsor your own TN visa. You also cannot work as a freelancer or independent consultant without a genuine employer-employee relationship.
What Counts as Self-Employment
USCIS considers the following to be self-employment, all of which disqualify you from TN status:
- Sole or controlling shareholder: If you own more than 50% of the company that sponsors your TN visa, that's self-employment.
- Independent contractor without employer control: If you set your own hours, choose your own clients, and control how the work is done, there is no genuine employer-employee relationship.
- Foreign employer doing business in the US: If you own a Canadian company and have it "hire" you to work in the US, USCIS will likely view this as self-employment.
- Sole proprietorship or partnership: Operating any business where you are the principal is self-employment regardless of how it's structured.
Can I Work as a 1099 Contractor?
This is a gray area. The key question is whether a genuine employer-employee relationship exists, regardless of how you're classified for tax purposes.
A 1099 arrangement may qualify if:
- The company controls what work you do, when you do it, and how you do it
- You work primarily or exclusively for one company
- The company provides tools, equipment, or workspace
- The company sets your schedule and deadlines
A 1099 arrangement does not qualify if:
- You set your own hours and work independently
- You have multiple clients simultaneously
- You control how the work is performed
- You invoice for completed projects rather than receiving regular pay
Alternatives for Entrepreneurs
If you want to run your own business in the US, these visa categories may be options:
E-1 Treaty Trader
For Canadian citizens engaged in substantial trade between Canada and the US. Requires that over 50% of your trade is between the two countries. No minimum investment amount, but trade must be "substantial."
E-2 Treaty Investor
For Canadian citizens investing a substantial amount in a US business. No fixed minimum, but typically $100,000+ is expected. You must actively direct and develop the business. Renewable indefinitely.
O-1 Extraordinary Ability
For individuals with extraordinary ability in sciences, arts, education, business, or athletics. Requires evidence of sustained national or international acclaim. High bar, but allows self-petitioning through an agent.
L-1 Intracompany Transferee
For employees transferring from a Canadian office to a US office of the same company. Requires that you've worked for the company abroad for at least 1 year. You can open a new US office under L-1.
Can I Start a Side Business?
No. TN status authorizes you to work only for the employer listed on your TN approval. Any business activity outside that employment — including freelancing, consulting on the side, or running an online business — violates your status.
This includes passive business activities like managing rental properties, running an e-commerce store, or providing paid consulting outside your TN employment. While enforcement varies, the risk of status revocation is real.