Understanding the Benefits of a Joint Venture

As a savvy entrepreneur or business owner, your goal is growth through expansion of revenue and market share. While there are many business strategies for doing this, some business owners choose to enter into a joint venture with another business. A joint venture is established when two or more companies agree to join their resources for accomplishing a specific project. Joint ventures can be useful for large, international companies and small, single owner businesses. The key to a successful joint venture is a clearly written joint venture agreement. At Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P., our New Orleans commercial transaction attorneys have over 40 years of legal experience and can help you draft a clear, concise joint venture agreement.

Speak with our attorneys regarding your joint venture plan. Call (504) 517-8160 today.

Fundamentals of a Joint Venture

Businesses who wish to create a joint venture typically do so to accomplish a specific business goal over a limited amount of time. Joint ventures are different from partnerships as they are typically for a specific project and for a limited duration, whereas a partnership is typically a broader, longer-lasting business relationship. While the specifics of your joint venture agreement are entirely up to you and the business you are making the agreement with, there are two ways businesses can establish a joint venture.

  1. Two Businesses Join Forces: Both businesses enter into a contract with one another contributing cash, property or other assets to the shared goal. You and other business will outline a joint venture contract with your New Orleans commercial transaction attorney explaining the terms of sharing profits, losses, management and control.

2.Two Business Create a Separate Business: Another option is to set up a separate company independent of both parent companies. For example, the parties may decide to set up an LLC or a corporation to produce a new product both parties had a hand in creating. Should you choose this option, retaining a skilled New Orleans commercial transaction lawyer is imperative for drafting a legal agreement outlining the terms and conditions of your joint venture.

Hire an Attorney to Draft Your Joint Venture Agreement

Joint venture agreements can be extremely complicated, as they need to include detailed information regarding the distribution of profits, losses, management, and exit strategies. Retaining a skilled New Orleans commercial transaction attorney to develop a joint venture agreement that falls in alignment with both your business goals and your partner’s is critical to the success of your business.

Speak to an attorney from Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P. today.
Call (504) 517-8160 or submit a case evaluation form online!

Contact Lowe, Stein, Hoffman, Allweiss & Hauver L.L.P. Today

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