| What is a Joint Venture? | | | | a more secure form of partnership, as both have |
| When two entities enter into an equal partnership, this | | | | shared the risk. Both parties' reputations and profitability |
| is a joint venture. The essential defining factors of this | | | | depend upon their doing their part to succeed. |
| union are equal risk and equal reward. That means | | | | Where do I find the right company to align with? |
| that each party will divide the costs evenly, and will | | | | You'll have to ask yourself what parts of the country |
| also share the profits. The parties may enter into a | | | | or internet you'd like to reach. Or if part of your |
| legally binding agreement that covers the | | | | company's vision is to become international, then a joint |
| responsibilities and expectations of each. Later, we will | | | | venture may be required. Many US companies must |
| discuss the different forms a joint venture can take. | | | | form a joint venture with an international one in order |
| First, we will get a more complete understanding of a | | | | to do business in that country. The US company must |
| joint venture. | | | | partner with the foreign one in order to be legal. |
| When is the right time to partner? | | | | Who should I JV with? |
| You will have to take a good honest look at your | | | | At times, choosing the right entity to join with can |
| company. Consider the timeline of your success. | | | | seem overwhelming. After all, you have a company to |
| Where did you begin? Where are you now? Where | | | | run. If you have your own research and development |
| do you see your company in 5 years? In 10? After | | | | team, they can help find the company whose |
| grasping that perspective, explore the key | | | | partnership will help your company develop into its next |
| components needed to get you to your short term | | | | level of success. However, consider that there are |
| goals, and then your long term goals. Finally, if what is | | | | joint ventures brokers who can do this job for you. |
| needed could be supported by partnering with a | | | | After collecting information of your company's vision, |
| company who does or has what you need, then now | | | | they can help you find the best match for you |
| may be the time to form a joint venture. | | | | particular goals. |
| Why a Joint Venture? | | | | How do I form a Joint Venture? |
| Entering into a joint venture has some known benefits. | | | | A joint venture will most commonly take the form of a |
| The first and maybe most appealing of them is the | | | | corporation, a limited liability company, or a limited liability |
| concept of spreading the liabilities between the two | | | | partnership. Many things should be considered when |
| parties. Most parties are willing to put in their share of | | | | choosing which is right for you. Each of these have |
| equity, feeling assured that the other party is equally | | | | different tax implications, and it is recommended to |
| invested. As the saying goes, people follow their | | | | consult a tax professional is deciphering the best fit for |
| money. Because of this, entering into a joint venture is | | | | both parties. |