Joint Venture: Here’s what you need to know

It’s that time in the alphabet, MyCorp blog readers- time for some ‘J!’

And today’s letter J is brought to you by Joint Ventures.

A joint venture is a firm formed to accomplish specific objectives with a partnership; a temporary arrangement between two or more firms. They’re great as a risk reduction tool when entering a new-market and for pooling resources for large projects.

All those involved in a joint venture enter with a contract or agreement that specifies mutual responsibilities and goals. In the contract the parties should be specific about the intention behind the joint venture as well as mark out limitations.

In a JV the parties have a mutual right to control the enterprise, a right to share the profits, and a duty to share in any losses incurred. Those involved owe a standard of care to the other members and have the duty to act in good faith in matters that concern the common interest of the enterprise.

Joint ventures can end at a time specified in the contract, upon the accomplishment of the JV’s purpose, if there is a death of an active member, or if a court decides that serious disagreements between members make the continuation impractical.

So if you want to dive into a large project but don’t want to go in alone or just think it would be better tackled with more heads, look into a joint venture!

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.