Joint Ventures Toolkit

Practical Law Toolkit 4-562-1605 (Approx. 12 pages)

Joint Ventures Toolkit

by Practical Law Corporate & Securities

Maintained • USA (National/Federal)

Resources to assist attorneys in understanding the fundamentals of forming a joint venture.

Joint ventures are commercial collaborations between two or more independent entities, formed for either a single purpose project or a continuing business. Joint ventures can be formed:

As new entities, jointly owned or owned in an agreed proportion by the joint venture parties.
When one party buys an interest in an existing entity's start-up or developing business.
Through a contractual relationship without the use of a separate entity (sometimes referred to as alliances or strategic alliances).

Parties may decide to form a joint venture to leverage their combined technical expertise to develop new products or technology for commercialization more quickly or to help spread the risks and costs of particularly expensive or large projects. When forming a joint venture, there are certain threshold questions and issues to consider, such as:

Who the parties to the joint venture will be and if the entities require any approvals before entering into the joint venture.
The structure and objectives of the joint venture.
Whether any consents, licenses, or permits will be required to operate the joint venture.
Whether the joint venture should be carried out through a separate entity or a direct contractual relationship between the parties.

The challenge for attorneys is to help create a structure that captures the underlying goals of the parties, along with meeting the joint venture's technical, operational, financial, accounting, regulatory, legal, and tax requirements.

This Joint Venture Toolkit provides several continuously maintained resources to assist counsel in forming a joint venture.

Joint Ventures Toolkit | Practical Law