What is a Joint Venture ("JV"), it is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a JV, each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests.
Although they are a partnership in the colloquial sense of the word, JVs can take on any legal structure. Corporations, partnerships, limited liability companies and other business entities can all be used to form a JV.
In many cases this type of transaction can be perfect in the small business world where capital is at a premium. Partnerships like this can many times enable small business to compete with larger ones more easily.
