Starting a small business, selling on Amazon and importing from Korea: LLC, sales tax, 1099-K and tariffs in TX, GA, AL, TN and AZ

Based on official sources: state filing offices and revenue agencies, IRS, USCIS, CBP, USTR, the Federal Register and FDA (checked 2026-10-23). General information, not legal or tax advice.

Opening a small shop, selling on Amazon, or bringing in cosmetics and snacks from Korea all come down to three questions: how to set up the business, which taxes apply, and what customs and the FDA require. Import rules changed more in 2025–2026 than in years. We give each rule exactly as the official text says it, and we mark anything we couldn't confirm.

At a glance — 5 states

*Tennessee lists $300 and adds "Additional Fees May Apply"; we couldn't confirm the exact per-member formula on an official page.

1. Starting the business

LLC. An LLC is created by filing with the state. Texas: Certificate of Formation (Form 205), $300, online through SOSPortal. Georgia: Articles of Organization at ecorp.sos.ga.gov, $110 under the fee schedule effective September 6, 2025, plus an annual registration ($50 + service charge). Alabama: Certificate of Formation with the Secretary of State, $200 (the online portal adds fees). Tennessee: Articles of Organization, $300 ("additional fees may apply"). Arizona: Articles of Organization with the Arizona Corporation Commission, $50 ($85 expedited). Arizona also requires a published notice (A.R.S. § 29-3201). The ACC posts it if your statutory agent is in Maricopa or Pima County; otherwise you publish it in a newspaper after approval.

DBA (assumed name). In Texas, a sole proprietor files an assumed name certificate with the county clerk, and an LLC files Form 503 with the Secretary of State ($25, good for up to 10 years). In Georgia, trade names are not filed with the Secretary of State. They go to the clerk of superior court in your county, with a newspaper notice for two weeks (O.C.G.A. § 10-1-490). Alabama registers trade names with the Secretary of State ($30). Tennessee entities file an assumed name with the Secretary of State ($20). We couldn't confirm the sole-proprietor rule. Arizona's $10 trade name registration is "not legally required … but is an accepted business practice."

EIN. Get it directly from the IRS online. "You never have to pay a fee for an EIN," and the IRS warns about websites that charge. You need an SSN or ITIN for the responsible party.

Visa status. Whether you may run a business depends on your immigration status, and USCIS is the authority. USCIS says a B-1 visitor may not "hang up a shingle," meaning open and operate a business. An F-1 student "may start, own, and work for" a business during the initial OPT period (related to the major). Otherwise, running a business generally needs a status that authorizes employment. Check USCIS's entrepreneur pathways page or an immigration attorney before you start. Owning paperwork is not the same as being allowed to work.

2. Taxes when you work for yourself

Self-employment tax. It is 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment earnings. You file Schedule SE once net earnings reach $400. You can deduct the employer-equivalent part. An extra 0.9% Medicare tax applies above $200,000 (single) or $250,000 (married filing jointly).

Quarterly estimated tax. If you expect to owe $1,000 or more, pay during the year with Form 1040-ES. 2026 due dates: April 15, June 15, September 15, 2026 and January 15, 2027. You avoid the penalty if you pay at least 90% of this year's tax or 100% of last year's.

Form 1099-K. The IRS says the One, Big, Beautiful Bill retroactively restored the old threshold. Payment apps and online marketplaces file a 1099-K only when payments exceed $20,000 and there are more than 200 transactions. Card processors issue one for any amount. You may still receive one below the threshold, and "whether or not you receive a Form 1099-K, you must still report any income."

Sales tax and Amazon (marketplace facilitator). In all five states, a marketplace like Amazon collects and sends in the sales tax on sales it facilitates once it passes the state threshold (GA and TN $100,000; AL $250,000, at the 8% Simplified Sellers Use Tax). What the seller must do differs: - Texas: a Texas-based seller "must have an active sales and use tax permit" even when selling only through a marketplace. The permit has no fee, though a security bond may be required. Keep records for 4 years. - Georgia: the facilitator is treated as the "dealer" for facilitated sales. We couldn't confirm the seller-side registration rule; ask the Department of Revenue (Policy Bulletin SUT-2020-01). - Alabama: an in-state seller who sells only through a participating marketplace "is not required to register for a sales/use tax account but should instead apply for an exemption certificate." - Tennessee: in-state sellers should register even if every sale goes through a facilitator, file returns, and get a TN resale certificate. - Arizona: sellers using only a facilitator "are not required to obtain" a TPT license. Keep the facilitator's documentation. If you sell on your own site or at events, you need the TPT license ($12 + city fees).

3. Importing products from Korea

You are the importer of record. CBP says importers "may make entry on their own" or hire a licensed customs broker. Either way, "you, the importer of record, are ultimately responsible" for the entry, duties and fees. Look up the product's classification in the Harmonized Tariff Schedule (hts.usitc.gov). Shipments over $2,500 need a formal entry, and many shipments of $2,500 or less can use an informal entry.

The $800 de minimis rule is suspended. Duty-free entry for shipments of $800 or less has been suspended for all countries since August 29, 2025 (Executive Order 14324, continued by E.O. 14388). The February 2026 order ending the IEEPA tariffs left it "unaffected." CBP then made the suspension indefinite by regulation: non-mail shipments from June 24, 2026, and mail from July 24, 2026 (with a new postal informal entry process). By statute, the One Big Beautiful Bill Act ends the de minimis exemption on July 1, 2027. In practice, even a small box from Korea needs an entry and pays all applicable duties, taxes and fees. CBP proposed more low-value shipment rules on October 8, 2026 (comments until December 7, 2026).

Tariffs on Korean goods today. Here is how it changed: 1. 2025: a 15% "reciprocal" rate for Korean goods under IEEPA (Federal Register, December 4, 2025). 2. February 20, 2026: the White House order "Ending Certain Tariff Actions" said the IEEPA duties "shall no longer be in effect." 3. February 24 – July 24, 2026: a 10% temporary import surcharge under Section 122 (Proclamation 11012). It was set to end at 12:01 a.m. ET on July 24, 2026. We found no extension, but we also didn't find a formal CBP end notice. 4. Now (from 12:01 a.m. ET, July 24, 2026): USTR's Section 301 action (forced-labor import-ban investigations) imposes "12.5 percent tariffs net of MFN on products of South Korea." If a product's normal duty is under 12.5%, the total becomes 12.5%. If it is 12.5% or higher, no 301 duty is added. CBP uses HTS 9903.05.71 / 9903.05.70 (CSMS #69326983). Exemptions are in Annexes I and II, and products under Section 232 tariffs are exempt from this duty.

KORUS free trade agreement. To claim KORUS preference, put "KR" before the HTS number on the entry. Base the claim on a certification by you, the exporter or the producer; you are responsible for its accuracy. Keep the records 5 years. CBP generally won't ask for the certification on importations of $2,500 or less. We couldn't confirm on an official page exactly how a KORUS claim interacts with the 12.5% Section 301 cap. Ask a licensed customs broker or CBP before you price your products.

Food (FDA). Every food import needs Prior Notice to FDA. The deadlines are at least 2 hours before arrival by road, 4 hours by air or rail, and 8 hours by sea. For international mail, notice must be given before the package is sent, with the confirmation number on the customs declaration. The foreign factory or warehouse that makes, packs or holds the food must have FDA food facility registration. Registrations are renewed October 1 – December 31 of every even-numbered year, which includes right now (2026).

Cosmetics (FDA, MoCRA). Manufacturers and processors must register their facility (renewed every 2 years). The "responsible person" (often the brand or U.S. distributor) must list each product and update the listing every year through Cosmetics Direct. Some small businesses are exempt, but not for certain products. Our sister site KBeauty Verified™, run together with JOBnaru™, offers a regulatory review of cosmetic ingredients for export: kbeautyverified.com/for-brands.

Related

• Living in the U.S. — guides
• Local Korean-shop jobs
• Salaries
• Overtime and minimum wage for hourly jobs

Fees, tax thresholds and tariffs change, sometimes overnight, and this is not legal, tax or customs advice. Confirm with the state filing office, your revenue agency, the IRS, CBP (or a licensed customs broker) and FDA. Checked 2026-10-23.

Cite this article as: JOBnaru™ — https://jobnaru.com/en/news/small-business-online-seller-import-korea-guide