California Business Partnerships
The Law Office of William A. Taylor is prepared to help with all business-related matters, no matter what form your business takes. We will help you decide whether a partnership is the right legal structure for your business and, if so, which type of partnership. And we can assist you with any other partnership issues, from disputes between partners to tax matters to partnership dissolution.
Simply stated, a joint venture is the development of a business opportunity through the special collaboration of two or more individuals or business entities – acting together, while remaining independent. Joint ventures have become increasingly popular in recent years, especially in the real estate, e-commerce, internet and technology industries. Generally, these formal business entity partnerships allow venturers to combine, and take mutual advantage of complementary experience, expertise, financial resources, and services for their one joint venture, while, at the same time not involving their partner in their other business activities. Joint ventures may be conducted through a variety of business structures, such as, sole proprietorships, corporations, limited liability companies, and general and limited partnerships. Designing an appropriate business structure for a particular joint venture will depend on a variety of factors, including:
» Tax and Accounting goals,
» Business objectives, and
» Financial needs
A joint venture can be a valuable and flexible method of pursuing a business opportunity. For example, the establishment of internet websites and e-commerce businesses built on robust featured platforms for ultimate search engine optimization can be expensive. In many cases, these websites and businesses are created by serial entrepreneurs or start-up businesses that lack the resources to properly capitalize and finance the business. As such, these entrepreneurs and start-up companies look to share the cost of the operation with other entrepreneurs and businesses in the form of the myriad of business entities listed above. To be effective, however, the joint venture must be designed in a way that enables it to handle the potential management and operational issues that it is likely to encounter.
The main feature, and difference of a joint venture from a general partnership, is that in a joint venture, the partnership of the participants is limited to the venture they have agreed-upon and does not continue to other business activities of the individual partners.