Choosing the correct form under which to do business is a key step in securing stability and success. In most instances, the parties are individual people who join together to form a new entity. However, options also exist for entities to pool their resources while still retaining a certain level of autonomy.
These are called joint ventures. Here, existing corporations, partnerships, and other business entities can enter into agreements that detail their profit allocation, costs of business, and other key issues. These agreements can allow two established parties to share expertise, expand into new markets, and share risks that go along with any business enterprise. An experienced attorney could provide more information about and guidance concerning commercial joint ventures in Fort Lauderdale.
The Legal Concept of a Joint Venture
A joint venture is one example of a business agreement that outlines the rights and responsibilities of each party. However, there are essential differences that make commercial joint ventures in Fort Lauderdale different than traditional partnerships or LLCs.
The parties entering into a joint venture are typically already organized as business entities. These may be corporations, partnerships, LLCs, or a combination of these groups. When the joint venture takes form, it must register with the Department of State just like any other new business.
These joint ventures operate independently of the core businesses or people who create them. This means that if Company A enters into a joint business venture that later gets into legal trouble or files for bankruptcy, these proceedings will not impact Company A’s core finances. An attorney in Fort Lauderdale can provide more information about the process behind forming a commercial joint venture and how this affects a party’s legal rights and obligations.
What are the Benefits of Forming a Commercial Joint Venture in Fort Lauderdale?
Entering into a joint venture comes with many advantages. As discussed above, they can serve as a shield for individuals or established companies looking to protect themselves from legal or financial liability.
In addition, parties that enter into joint ventures are free to draft agreements that govern this relationship as they see fit. However, common elements of these agreements include:
- Pooling resources to initiate a common project
- Sharing expertise and proprietary information such as intellectual property
- Obtaining market penetration in a specific location
- Structuring profit shares and loss obligations
Forming a commercial joint venture in Fort Lauderdale could require legal help to understand the consequences of this choice as well as to draft an agreement that has the intended effect. An accomplished local attorney could help by providing this vital support.
Consult with a Fort Lauderdale Attorney to Discuss Commercial Joint Ventures
A commercial joint venture is a form of business organization that can bring both proactive benefits and protection against potential legal liability. The two entities that enter into these arrangements agree to share resources and knowledge to fulfill a specific purpose. Once they achieve this purpose, the organization can dissolve.
At the same time, the joint venture enjoys independent status with the State and other parties. This means that any debts or legal trouble that occur are solely the problems of that joint venture and not of the parties that form the arrangement. If you have more questions about commercial joint ventures in Fort Lauderdale, reach out to our firm today to learn more.