Want to partner up with someone on a project without setting up a new company? A Joint Venture Agreement will do just that for you.
Entrepreneurs and innovators love to work together, and some great business gets done when they do. You may not want to create a formal partnership right now, like you would with a new company or a formal legal partnership. A Joint Venture Agreement allows you to set up a project and work with another company, much like a partnership, without creating a whole new company.
Use a joint venture for a temporary project that you want to collaborate on.
Joint ventures are used when two or more companies want to combine their talent and resources on a project. So unlike a corporation or formal legal partnership, a joint venture is not meant to last for a long time. You could be interested in a joint venture to save costs, increase your chances of winning a bid on a job, create a shared product, or pull off a one-time event.
A Joint Venture Agreement sets up your business deal and project for success.
We’ll map out your business deal in your Joint Venture Agreement so you stay productive and on good terms with your business partners. The agreement will cover things like the purpose of the collaboration, the investment by each venture partner, how profits will be shared, how expenses will be managed, and the vote each venture partner has in major decisions.
We’ll also make sure your confidential information and intellectual property are addressed. You can even decide in your agreement how shared new property (like the rights to a new product) will be owned between the venture partners.
Your Joint Venture Agreement can also include options to buy out the other venture partners if there is a disagreement.
A Joint Venture is different than a legal Partnership.
Although they look and feel quite a bit alike, there are few key differences between a Joint Venture and a legal Partnership.
A Joint Venture is meant to be temporary, usually just for the life of the project. A legal Partnership is usually an ongoing business that you hope will keep on going. Since it is an ongoing business, a Partnership is a legal entity all on its own and is responsible for its own liabilities.
A Joint Venture is just a contract between two or more companies working together for a while, so it isn’t a standalone legal entity. That means the venture partners are typically responsible for their own liabilities. So for example, someone can sue the venture partners separately, together, or just one or the other. But, the venture partners can agree to share the costs of liability between them if they want.
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