JV-H264_User_Manual_..
What is a joint venture (JV)?
A joint venture (JV) 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. Each of the participants in a JV is responsible for profits, losses, and costs associated with it.
What is a JV & how does it work?
A common use of JVs is to partner up with a local business to enter a foreign market. Although a JV is a partnership in the colloquial sense of the word, it can be formed using any legal structure: Corporations, partnerships, limited liability companies (LLCs), and other business entities can all be employed.
Can a company handle a JV project?
Two businesses might decide to set up a separate and independent company to handle the JV work or project. For example, you and another business owner might decide to form a corporation, limited liability company (LLC), or partnership to produce and sell a new product through a joint arrangement.
How do I formalize a JV?
You can formalize a JV either by entering into a contract —usually called a "joint venture agreement"—or by forming a separate business entity. Though if you form a separate business entity, you usually also have a JV agreement or some other contract or document that governs the business venture.
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