Joint Ventures

Joint ventures are shared between two or more parties who wish to collectively embark on a financial endeavor. Parties contribute equal amounts of equity to the project and they then share the capital, control, technology, and resources that come out of their activity. Examples of joint ventures include corporations, limited liability companies, and partnerships.

Steps to Take before Setting out on a Joint Venture

There are several steps that each party is recommended to take before beginning a joint venture with each other. These include (although are not limited to) the following:

• Choose a reliable partner: It would be wise to perform some sort of background check on your new partner in this venture. Ensure that he, she, or they do not have a faulty business history, and do appear to have sound morals.
• Check up on each other from time to time so that each partner is aware of what the other is doing. In a joint venture, you should always be on the same page.
• Develop a business plan and exit strategy together: Since this is a collaborative effort, and since you want your needs and desires expressed and carried out in the business plan, work together with your partner to develop these two pieces of documentation.
• Sign a joint venture agreement: This is a document signed by both parties that clearly lays all stipulations of the project, including monetary matters, power and control allotment, and property rights.

Contact Us

For more information on joint ventures and help with a joint venture contract, contact the Austin contract law attorneys of Slater Kennon & Jameson, LLP at 512-472-2431.