Originally Posted by Q-Dat
Ok. I spoke to him again today. He has suggested a deal in which I am responsible for all expenses in regards to BBQ (meat, rubs, sauce, sides, wood, supplies etc). He would continue to sell his regular items, but I would have full use of the kitchen and all food would go through the same cash register.
He has proposed a commision for himself of 15% of my gross in exchange.
A lot depends on what you are considered. If you are an outside contractor (which I am assuming since everything is supposed to be running through the same register) then he will have to 1099 you and you are responsible for sending in tax payments to the IRS.
I don't think running your food through his register is a good idea. This will make tax payments really weird. If someone buys a pulled pork from you and a cheeseburger from him, it will be rung up at the same time. He would have to be responsible for sales tax payments. The whole shared register is a bad idea IMHO.
Also, if you were to lease a space, you could write off the lease payments whereas with this proposed setup, you are limiting the tax advantages you will be able to take advantage of.
I'm not an accountant but I did stay at a Holiday Inn Express last night....