I am a wedding planner who is working on behalf of a venue to book/sell weddings for them.
The agreement is, I handle the sale and contract and then receive the deposit. I then pay the venue their normal deposit (my cut is the difference) example: the venue costs $3000 to rent and I charge a customer $4000, so I keep $1000 for my planning services and pay the venue the other $3000 (their normal deposit).
With this arrangement, it’s a little backwards because I am kind of like the contractor receiving the initial monies from the client, and I then pay the venue their normal fees.
Is my payment to the venue considered a business expense, or do I need to issue a 1099 to the venue?
