Are you wondering what type of business arrangement is best for you?
A joint venture agreement is a “partnership” of two or more individuals or companies with the intention of making profit. The goal is for every “partner” in the agreement to contribute assets, receives profits and assume the risks and liabilities that come with a joint venture agreement. A multi-member limited liability company combines the limited liability protection of a business with the idea of a “partnership”. Both a multi-member limited liability company and a joint venture agreement share the common attribute of more then one person working together towards one goal.
Members of a limited liability company (LLC) and a joint venture must come to an agreement in order for the “partnership” to work. An operating agreement is the written document of the agreement. If you need assistance with your operating agreement, contact us today and we can help you get started.
The joint venture agreement and the limited liability company both have their own way of forming “partnership”. Members of a joint venture are not required to file documents with the state to operate so there are no initial filing fees. Additionally, unlike limited liability companies all joint venture “partnerships” do not pay annual fees to conduct business.
There is a big difference when it comes to liability between a joint venture agreement and a limited liability company. Members of a joint venture are personally liable for the partnership’s debts, this means that a creditor can come after a members personal assets if the business’ assets do not cover the amount owed. Members of a limited liability company have personal asset protection against obligations of the LLC.
After your business is formed, our attorneys can consult and assist you regarding directors’ and officers’ liability, employee relations, franchising, reorganization, mergers, shareholders’ rights, registering a trade name and protecting a trade name, business successions, and buy-sell agreements.
If you need advice on which arrangement is best for you or if your business is already formed and would like further guidance, do not hesitate to contact us. We can point you in the right direction and make sure that you receive proper assistance. Our office number is 713-572-4900.