Since 1986, federal law (IRCA) requires employers to verify that employees are legally authorized to work in the United States. Under IRCA it is illegal to knowingly employ unauthorized workers in the U.S. Those who knowingly hire undocumented individuals, may face civil fines, criminal penalties, or debarment from government contracts. 

An exception to this rule, however, is that an individual or entity is not required to obtain an I-9 form from independent contractors or sporadic domestic workers. Therefore, Independent contractors and business owners may not have to provide work authorization to provide their services or sell their products. 

Consider the following questions to help you understand what social need you are addressing: 

• What is the customer problem that your business will solve? 
• How will your business provide value to or improve the lives of your customers? 

Below are some examples of how businesses create social change or meet community needs:

• Homemade products that are more environmentally friendly than mass-produced goods
• A percent of all sales is given to a scholarship fund
• A nonprofit organization that serves immigrants

Your clients are coming to you looking for a solution to their problems or needs. By understanding your client’s needs you can improve your products and/or services.  Think about what products and/or services you provide and the benefits they provide your clients.

 For example:

• A barbershop provides personal care to clients and raises their self-esteem.
• A design company offers logos and design work to small business owners who are not tech savvy. 
• A food truck serves homemade, affordable food in a low-income neighborhood.

You are the best sales person and representative of your own business. You need to be able to briefly and clearly explain who you are, what your business does, and your business needs. One method is to create an elevator pitch. The purpose of an elevator pitch is to “sell” your business in less than 30 seconds and grab the attention of your potential clients and others. Here’s an example of an elevator pitch for a  meeting with a potential client:

Hello, I’m Daniela Vargas. My company, Vargas Designs, provides professional logo and design work to small businesses at an affordable cost. If you need a new logo or design for your business, please contact me at email@email.com. 

Try following this template to create your elevator pitch:

Hello, I’m [ your first and last name ]. My company, [ company name ], provides [ your services/products ] to [ your target market ] by [ your solution ]. [ Ask ]. 

Here are some tips to help you get started: 

1. State who you are and introduce your company.
2. Tell the person you’re speaking with exactly what you or your company do. Give an example of the services you offer!
3. Describe how you, your company, or your product meet a social need.
4. Wrap it up with an ask. Be clear about what you are looking for!

Practice your elevator pitch as much as you can! Take note of what works well and what you can improve. 

SB1159 allows individuals to apply for a professional license in California using an Individual Tax Identification Number (ITIN) across all CA 40 license boards. Here are some examples of professional licenses:

• Accountant
• Architect
• Barber
• Lawyer
• Manicurist
• Occupational Therapist
• Real Estate Agent

AB2184 allows individuals without a social security number to obtain a business license (also known as a Business Tax Certificate) in California. This law requires local governments (city and county) to accept any of the following alternative numbers in lieu of a SSN for a business license application: 

• CA driver’s license
• CA identification number
• Individual Taxpayer ID (ITIN)
• Municipal ID

The Internal Revenue Service (IRS) Common Law Rule determines who is an independent contractor or an employee. In California, independent contractors are subject to AB5, the “ABC Test”.

Under the ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions:

• The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
• The worker performs work that is outside the usual course of the hiring entity’s business; and
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

In California, willful misclassification of workers can result in civil penalties, between $5,000 and $25,000 per violation.
More information about these guidelines can be found in the IRS Employer’s Supplemental Tax Guide (Publication 15-A).

• Cal Gold (CA) – This website assists you in finding appropriate permit information for your business. It also provides contact information for the various agencies that administer and issue these permits.
• State Licenses and Permits, SBA
• E4FC’s Career License Opportunities for All!

• Choose and Register Your Business, SBA
• Business Name Availability (CA)

• Immigrants Rising’s Introduction to Working for Yourself Guide
• Immigrants Rising’s Guide to Professional Licensing
• Small Business Administration (SBA) Tips for Self-Employed & Independent Contractors
• Independent Consultant Network
• Freelancers Union
• Sample: Independent Contractor Agreement (California)