![]() ![]() ![]() The legal liabilities of the parties under a joint venture are usually limited whereas under a partnership may be unlimited andĪ joint venture is usually conducted as a separate legal entity, whereas a partnership is typically a see-through structure that is arguably more tax efficient.Ĭ. While partnerships may be regarded as a subset of joint ventures, there are still some important differences:Ī joint venture can be for a single project whereas a partnership is usually intended for a longer-term continuous business arrangement It is not a separate entity and is formally recognized by the law (except for limited liability partnership, see below). Partnerships are a kind of joint venture set up by contract. Joint Ventures come in all shapes and sizes and can be set up via a separate corporate entity or by entering a simple contract. What is the Difference Between a Joint Venture and a Partnership?īoth joint ventures and partnerships are commercial arrangements between two or more parties who seek to cooperate in a business venture to share resources, risks, and rewards. Below are some guidelines and templates which will help you distinguish between a joint venture and a partnership, and help you choose which legal structure to use.ī. Are you looking to enter into a business cooperation agreement with others? If so, have you thought about what kind of cooperative agreement you want to have (joint venture or partnership)? Whilst the terms joint venture and partnership seem somewhat similar, they are not interchangeable and cannot be conflated.
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