Entering into a significant business relationship with another party holds significant risk, but also significant upside. To minimize this risk and increase the potential for success, it is important that all parties understand the objectives, shared responsibility and exactly how costs and profits will be distributed.

Some important Joint Venture concepts include:

• Choice of Business Entity - often when formed, a separate entity will be created such as a Corporation, LLC or partnership.
• Management of the Venture - with two or more partners, a decision-making structure needs to be addressed to ensure a smooth operation.
• Non-circumvention - ensures that one partner will not attempt to leave out other partners for specified opportunities. These opportunities are often related to the direct business objective of the joint venture.