The bar owner would continue to sell alcohol and take the profits from the alcohol sales. They will not charge us anything except utilities. We would cover all expenses and purchases pertaining to food and take all food profits. Does a 1099 make sense for a situation like this?
Are they going to handle the money side of things and pay you the food portion?
It’s fine to give you a 1099 in that situation if there’s no LLC or corporate entity on your side.
Debatable if it’s needed but if you’re buying the raw ingredients it’s certainly not a W2 situation.
I’d make sure to think through how you audit their side, who pays for waste - for example if a server drops a plate, or a customer just doesn’t like something, and a whole bunch of other things.
Including whether you can operate as a dark kitchen out the back for delivery under your own name or theirs.