A joint venture is similar to a partnership, but it is usually limited to a single transaction. Companies can create two main types of joint ventures: (1) contractual; and (2) a separate legal entity. Creating a contractual joint venture is made by a contract between the joint venture partners. It should be in writing, but it could also be verbal. Creating a separate legal entity joint venture requires the creation of a corporation or limited liability company.
Typically, a contractual joint venture is chosen when the monetary amount is small, or the joint venture will be short. When there is more money at stake for a more extended period, the creation of a new joint venture entity is usually chosen. A joint venture agreement is often what the contract is called that assigns the partners’ obligations in the joint venture.
What is the difference between a partnership and a joint venture?
Joint venture members are together for a project instead of everyday business between partners. The joint venture members also retain the ownership of their property.
What is the difference between a strategic alliance and a joint venture?
In a strategic alliance, the entities operate separately instead of together. A strategic alliance is an agreement between two or more entities to work together to increase both parties’ individual performance.
What is the difference between a joint venture and a cooperative?
Cooperatives share a common social, cultural, or economic objective that is a long term arrangement. Joint ventures are intended for a project.
How to create a joint venture?
If you are thinking about forming a joint venture, you must get an experienced business law attorney on your side quickly. Contact the Waco business law attorneys at Dunnam & Dunnam for a free consultation about your joint venture.
Hire an experienced Waco business attorney
Dunnam & Dunnam’s business lawyers are known throughout Waco for their tailored legal advice for some of Central Texas’ most influential companies. Call us at 254-753-6437 to discuss your business law situation in Waco.
Andrea's practice focuses primarily in Appellate Law, Civil Trial Law, Family Law, and General Law.Read More
Carolina G. Truesdale graduated from Texas Tech University School of Law, Cum Laude.Read More
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