Is A Joint Venture Right For You?
A joint venture is often an attractive opportunity to partner with another company or individual to quickly gain access to new markets or technology, perhaps as an alternative to starting another business from scratch or to making an acquisition. When it comes to your business, it is important that you make strategic decisions that have been given thorough consideration. When considering a joint venture, every business owner should seek the counsel of an experienced attorney, such as those at the international law firm of Urban Thier & Federer, P.A.
With ample knowledge in business consulting, as well as commercial litigation, we are equipped to advise you on business formation and venture matters.
What Is A Joint Venture?
The label of “business joint venture” is a legal term that explicitly specifies the purpose, nature and terms of the joint venture. In a joint venture, both parties contribute assets, capital and/or skills, and share in the profits and losses.
It is essential that you have a definitive agreement for the sharing of revenue and losses that meet applicable local, state and federal laws. An estimated 75% of joint venture businesses operate on a global or international stage. In these instances, an attorney with a working knowledge of international trade and commerce law, as well as the laws pertaining to a specific foreign country, is of paramount importance.
Why Hire A Lawyer To Help?
Using an experienced attorney to create an agreement protects you in several ways. First, the attorney will help you with due diligence in researching your prospective partner’s past joint venture history and in aligning both sides’ goals. Of particular importance is the assurance that both parties agree not to separately compete with the joint venture.
An attorney can draw on experience not only to protect and promote your equity interest and proprietorship, but also to help mitigate any future issues regarding taxation, liability and responsibility for losses. Proprietorship is particularly important when assets or intellectual property is involved, so there are no arguments down the road about who owns what.
A written joint venture contract is advantageous because it provides both parties with a clear record of the contract terms. A good contract will include provisions for ending the joint venture, such as at the completion of the project, in case of bankruptcy, or in the event one party wants to sell its half. If a legal dispute arises over the contract terms, your joint venture attorney can file a lawsuit on your behalf and the written contract can be used as evidence.
See If A Joint Venture Is Right For you, Contact Us Today
Our attorneys work together as a team, utilizing their diverse backgrounds and areas of interest to help you understand your options and make informed decisions. Call our offices today at 646-530-8782 or email us to get guidance on this subject.
“This content is for informational purposes only and does not constitute legal advice or establish an attorney-client relationship.”