What is a Joint Venture?
A joint venture is an association of businesses with interests in any degree by way of contract, express or implied, consorting to engage in and carry out specific or limited-purpose business ventures for joint profit (or a joint goal), combining efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis for conducting business generally. (This is the SBA’s definition.)
Basically, it is coming together to work on a temporary project—a fancy name for a collaborative effort.
In most cases, joint ventures are treated like partnerships. They are both created by a contract, so contract law comes into play. Also, sometimes a new entity is formed for the joint venture to be housed in. The entity may be a partnership, LLC, or corporation.
📖 Read the 10 most innovative joint ventures of 2021. Note how each company benefits from the collaboration with their joint ventures.