Key Takeaways
- Hiring your first employee is a legal right for DACA business owners — you can be an employer with an EAD
- Bankable funds payroll, workers' comp, onboarding, and equipment for first hires with no citizenship requirement
- The leap from solo to employer is the most critical business scaling moment — get it funded properly
- SBA working capital loans now closed to DACA employers — Bankable fills the gap with 48-hour decisions
- Your existing solo revenue is your bankability for a team-building tranche — no green card needed
DACA recipients can absolutely be employers. There is no legal prohibition on DACA business owners hiring employees. You'll need an EIN (Employer Identification Number), which any business entity can obtain from the IRS, and you'll need to comply with all state employment laws — exactly the same as any other employer. The legal path to being an employer as a DACA business owner is clear and well-traveled.
The Capital Cost of Your First Hire
Hiring your first employee is more expensive than most solo operators expect. The direct costs include:
- Salary or wages: The obvious cost — $30K–$70K annually depending on role and market
- Payroll taxes: Employer-side FICA, unemployment insurance, and state payroll taxes (typically 10–15% additional)
- Workers' compensation insurance: Required in all states for employees; premium depends on industry and payroll
- Equipment and workspace: Computer, tools, vehicle, or workspace for the new employee
- Onboarding: Training time, background check, onboarding materials
- Benefits (optional): Health insurance contribution, retirement plan match
Why First-Hire Capital Matters
The first hire enables the solo operator to break through the ceiling on revenue. A solo DACA landscaper maxes out at what one person can physically do — roughly $150K–$200K annual revenue. Add one employee and that ceiling doubles. Add a second crew and revenue triples. The capital to hire is the investment that unlocks this scaling. Bankable funds it without asking for your passport.
Requirements for First-Hire Funding
| Factor | Standard |
|---|---|
| Immigration | DACA with EAD + SSN — no citizenship required |
| Current Revenue | $10,000+ monthly from your solo business operations |
| Business Age | 12 months of self-employed operations |
| Business Entity | LLC or corporation recommended before hiring |
| Funding Range | $15K to $100K for first-employee transition capital |
Frequently Asked Questions
Yes. DACA recipients who own businesses can hire employees. You'll need an EIN from the IRS and must comply with all applicable employment laws — identical requirements to any other employer.
Register your business for payroll taxes with the IRS (Form SS-4 for EIN) and your state tax agency. Use payroll software (Gusto, QuickBooks Payroll, ADP) to manage withholding and deposits. No citizenship-related steps are involved.
Yes. A working capital tranche covering the first 2–3 months of a new employee's payroll gives you time to generate the additional revenue that justifies the hire.
We typically look for $10,000+ monthly revenue before recommending a first hire. This provides enough cushion to absorb the additional payroll cost while the new employee generates additional revenue.
Yes. Workers' compensation premium — often a significant upfront cost for new employers — is a covered use case. Annual policy premiums of $5K–$20K are fundable.
Yes. Forming an LLC or corporation before hiring provides liability protection and simplifies employment tax administration. This is a standard legal step that does not involve your immigration status.
Yes. Family members who are eligible to work in the US can be employed by your DACA-owned business. They must have their own work authorization (EAD, green card, citizenship, or other valid status).
No. Employment decisions made as a business owner do not affect your DACA status. DACA is tied to your personal history, not your activities as an employer.
Yes. Part-time employees are a common first step. A part-time hire costs less but provides meaningful capacity expansion. We can structure a smaller tranche for part-time payroll support.
Yes. Bankable allows early repayment. If your first hire doesn't work out, contact your account team to discuss repayment options and potentially restructure the tranche.