Operating Agreement Can Protect OPT Students from Fraud: Must-Check Document Before Joining Consulting Firms in the US

For international students in the US, securing a job during Optional Practical Training (OPT) can be challenging. Many students turn to consulting firms to help them find employment. While some firms successfully assist students, others have been involved in scams, making it essential for students to verify the legitimacy of any firm before engagement.

A recent example shared on Reddit by an Indian student highlights this. The student experienced a scam with one firm but later secured a legitimate job through a new consulting firm. Crucially, the student requested a key legal document called the Operating Agreement, which ensured transparency and legal compliance.

What is an Operating Agreement?
In the US, all Limited Liability Companies (LLCs) are required to have an Operating Agreement, a primary legal document that defines:

• The company’s structure and ownership
• Management roles and responsibilities
• Scope of services the company is authorized to provide

This document essentially reflects the company’s credibility and legal standing. When requested, legitimate firms provide the Operating Agreement to clients.

Why OPT Students Must Check It
Under USCIS rules, students are responsible for maintaining their employment status, even if using third-party consulting or staffing firms. If a firm operates fraudulently or without proper authority, the student bears the consequences. Reviewing the Operating Agreement helps students confirm that the company is legally authorized to provide the services it promises, reducing the risk of scams.

Key Details Revealed in an Operating Agreement
The Operating Agreement provides essential information, including:

• The company’s legal name and structure
• The authorized scope of services
• Processes for tracking and delivering services

While reviewing the document does not guarantee a job placement, it confirms that the company can be trusted to operate legally.

Red Flags: When a Firm Refuses to Show the Document
The Reddit case showed that the previous firm hesitated to present its Operating Agreement, offering only verbal assurances. Immigration and employment experts warn that this is a common tactic among fraudulent firms, which may mislead students about their authority to provide job placement services. Legitimate companies, on the other hand, openly share the document.

What to Check in the Operating Agreement
Before engaging with any consulting firm, OPT students should examine the Operating Agreement for:

• The company’s legal structure and authority
• Details of services and training agreements provided to students
• Refund or service guarantees to ensure money is returned if promised services are not delivered

Verifying these aspects before making any payments or commitments is crucial to avoid falling victim to scams while navigating OPT employment opportunities in the US.