Business Law · Haute Lawyer Network
What Is a Joint Venture?
Last reviewed: June 2026
A joint venture (JV) is a business arrangement in which two or more parties combine resources, expertise, or capital to undertake a specific project or business activity while remaining independent entities. Joint ventures differ from partnerships — they are typically formed for a specific purpose with a defined endpoint, rather than an ongoing business relationship.
Common JV structures include contractual joint ventures (where the parties remain separate and govern the relationship by contract), LLC joint ventures (forming a new entity owned by the venturers), and corporate joint ventures (forming a new corporation). Joint ventures are common in real estate development, technology, natural resources, and international business — allowing parties to share risks and benefits of a project they could not or would not undertake alone.
Frequently Asked Questions
What is the difference between a joint venture and a partnership?
A joint venture is typically formed for a specific project with a limited duration. A partnership is an ongoing business relationship. Both involve shared risk and profit, but partnerships are broader and more permanent.
What are the key provisions in a joint venture agreement?
Capital contributions, governance and decision-making authority, profit and loss sharing, management responsibilities, intellectual property ownership, exit rights and buyout mechanisms, dispute resolution, and what happens when the venture ends.
What are fiduciary duties in a joint venture?
Joint venturers owe each other duties of loyalty and care — similar to partnership fiduciary duties — unless the JV agreement modifies these duties. Self-dealing and taking opportunities that belong to the joint venture can be a breach.
What is a deadlock in a joint venture?
When 50/50 venturers cannot agree on a major decision and neither has authority to break the tie. Deadlock resolution mechanisms — put/call provisions, mediation, buy-sell — should be built into the JV agreement before the venture begins.
Can a joint venture have employees?
Yes, if the JV is formed as a legal entity. If the JV is purely contractual, the parties typically provide their own employees or seconded staff.
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