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?
This sounds like a decent situation if the bar has a good crowd. I’m not sure that a 1099 makes much sense here though. The owner isn’t paying you. I’m no expert, but I would just set up a completely separate entity.