I owned my own art gallery and studio for four years with a friend/partner, despite advice not to do business with friends. We were set up as an S Corp, and I had my studio in the back, etc. All was well, but when it turned out that my work sold well and his didn't, I had to close it down because I wasn't a separate entity from him. Too bad too because I was selling a lot of work.
My advice is, operate as a separate business. Keep your own books, your own FFL, keep your own profits, and it could be mutually beneficial for both parties. You have the benefit of customers walking through the door, and they have the benefit of your skills. It's a win win. If it goes south for some reason, you can bail with no problems, or even better, they can bail and you can stay (I wish I had done that
).
Good luck!
