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.
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.
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.
Cooperatives share a common social, cultural, or economic objective that is a long term arrangement. Joint ventures are intended for a project.
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.
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.
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