Joint Ventures

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

In a joint venture, each participating party is responsible for the associated profits, losses, and costs. It’s important to note that the venture is its own entity which is separate from the participant’s other business interests. 

Joint ventures can take on any legal structures including corporations, partnerships, and LLC’s. One special consideration to take into account is how to pay taxes on a JV. A common way to solve this problem is by setting up the JV as one new entity. If the JV is separate, then taxes will be paid as any other legal structure would.