Carla Chavarria. Photo: Cindy Carcamo/LA Times

The Los Angeles Times
by Cindy Carcamo

Savvy young immigrants discover the limited liability company as a way to work legally. Some even hire U.S. citizens.

20 year-old, Carla Chavarria sits at the helm of a thriving graphic design business, launching branding and media campaigns for national organizations. Some of her projects are so large she has to hire staff.

Chavarria has to hop on buses to meet clients throughout Phoenix because Arizona won’t give her a driver’s license. The state considers her to be in the country illegally.

She may not drive, but along with thousands of other young people who entered the country illegally, Chavarria has found a way to make a living without breaking the law.

Although federal law prohibits employers from hiring someone residing in the country illegally, there is no law prohibiting such a person from starting a business or becoming an independent contractor.

“We pay taxes. We create jobs.”As a result, some young immigrants are forming limited liability companies or starting freelance careers — even providing jobs to U.S. citizens.

Creating a company or becoming an independent contractor has been a way for people who are in the country illegally to work on a contract basis and get around immigration enforcement. Organizers who help immigrants said the idea has taken on new life in recent years, often among tech-savvy young people who came into the country illegally or overstayed visas.

Chavarria, who was 7 when she crossed into Arizona from Mexico with her mother, said her parents told her from a young age that anything was possible in her newly adopted country.

“We’re taught as young kids that this is the land of opportunity,” she said. “They told me, ‘You could be anything you want to be if you work hard, you're a good person, obey your parents and go to school.’ ”

But when she graduated from high school in Phoenix, Chavarria discovered that her lack of legal status was a roadblock to becoming a graphic designer. Although she won a scholarship, she said, she could afford to take only two classes at a time at Scottsdale Community College because she wasn't willing to risk working with fraudulent documents to pay for school.

Chavarria learned about the of labor law — and how to register as a limited liability company. “I didn’t know it was possible,” Chavarria said. “And it wasn't that hard.”

It was as easy as downloading the forms from the Internet, opening up a bank account and turning in paperwork to the state along with a $50 fee. Proof of citizenship is not required. Regulations vary, but similar procedures exist in other states.

Chavarria also qualified for relief under the federal program this year. Although she said the program gives her peace of mind, she doesn’t want to become an employee. She likes the autonomy of having her own business.

Most days, a coffee shop in Phoenix serves as her office, and she charges clients $350 to $5,000 per project. The first time she contracted workers for a large campaign, an odd thought hit her: Although others couldn’t hire her, she could hire others.

She also realized that her success had a larger significance.

“They say we’re taking money and jobs and don’t pay taxes,” Chavarria said. “In reality, it’s the opposite. We pay taxes. We create jobs. I’m hiring people — U.S. citizens.”

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