A joint venture is a cooperative agreement between two or more business entities or individuals. The purpose of forming a joint venture is to start a new business activity or accomplish a specific goal or task. Each entity that joins into joint venture agreements must contribute assets to the venture. As with any other partnership, disputes can arise.
Discuss Your Case With a Joint Venture Agreements Attorney
Whether you are considering entering into a joint venture or you’re involved in a dispute regarding a joint venture, Woods Lonergan PLLC is here to help. The experienced business litigation attorneys at Woods Lonergan can help you draft an agreement that clearly details each party’s responsibilities and rights in the new entity. Contact our business contracts attorney to learn more about our joint venture services.
Our Joint Venture Agreement Services
Woods Lonergan provides clients with comprehensive legal assistance regarding structuring and negotiating equity and contractual joint ventures. Our attorneys have significant experience forming and documenting limited liability companies. We will sit down with you and learn more about your goals and needs related to the joint venture. One of our attorneys can help you understand and negotiate all of the essential aspects of the joint venture, such as:
- Preformation issues
- Cash distribution provisions
- Decision making and deadlock resolution
- Financial obligations in capital requirements
- Default remedies
- Allocation of profits and losses
- Tax implications
- Securities offering matters
- Antitrust matters
- Governing law selection
- Venturers as vendors, employees, and customers
- Transfer restrictions and exit mechanisms
Joint Venture Agreements
A joint venture agreement is a contract that sets forth how the parties will manage the joint venture. A well-written joint-venture agreement should outline the assets that each entity is required to bring to the venture, including money, property, or other assets. The agreement should also address how the parties will divide control and divide profits and losses. Drafting a well-written agreement is crucial.
When disputes arise, the agreement should address how they need to be resolved. At Woods Lonergan, we can help you draft or review your joint venture agreement before you sign it so you can understand your responsibilities and rights. Joint venture agreements should include provisions addressing all of the following:
- The parties involved in the agreement
- Each party’s percentage of ownership
- Management members and structure
- The bank account(s) that the joint venture will use
- Each party’s percentage of ownership
- Allocation of distributive share for each party
- List of resources
- The employees and independent contractors who will be working on the joint venture
- Which state laws apply to the joint venture
- How the parties will produce and retain administrative records and financial statements
- How disputes will be resolved
Advantages of a Joint Venture
Joint ventures can create a new and separate business entity that can be structured as a corporation, a limited liability company, or a partnership. Alternatively, a joint venture can operate on an agreement between existing companies and doesn’t need to form a new entity. These types of joint ventures are called unincorporated joint ventures. Individuals and businesses create joint ventures for a wide range of reasons.
Combining expertise and leveraging resources are two important benefits of creating a joint venture. For example, if one partner has excellent marketing acumen and another has a key patent or a great team of designers, these companies may want to come together to form a joint venture. The parties can leverage their resources to have more industry clout. Combining resources can bolster the joint venture’s success better than one business could have on its own.
Saving money is another benefit of forming a joint venture. Smaller companies that don’t have significant resources can join together to share marketing, accounting, and perhaps trade publication costs. Finally, businesses that would like to expand their distribution to another country can benefit from partnering with a local business in that location. Some countries restrict overseas entities from entering their market. A joint venture with a local business that is already operating in that locality can provide a much easier way to do business in that region.
International Joint Ventures
If you are interested in unifying your international business with a corporate partner headquartered in New York City, forming a joint venture can be effective. The attorneys at Woods Lonergan can help you understand the legalities and face any business challenges that are associated with undertaking a joint venture or partnership in New York City.
We can help you protect your business and legal interest while accommodating divergent business cultures. Our attorneys are skilled in negotiation and can help both parties compromise and accommodate their concerns with the intention of realizing more profits together than apart. Our law firm offers an innovative approach to foreign legal representation while providing our clients with the best approach possible to maximize their success and financial return.
Forming a joint venture isn’t a simple process. There are complicated issues that both parties need to consider. The attorneys at Woods Lonergan have helped form many successful joint ventures between individuals and companies. We can help you understand how things may play out under different joint venture structures. Even with the most well-written joint venture agreement, disputes can arise.
Sometimes joint ventures end under acrimonious circumstances. If you would like to extricate yourself or your business from a joint venture agreement, we can help you. Our attorneys know how to efficiently identify contractual frameworks and collaborate to come up with creative solutions to meet our client’s goals. We can help you with the negotiations and the separation. If you are involved in a joint venture dispute, Woods Lonergan is here to help.
Contact Our New York City Joint Venture Agreements Attorney Today
Many advantages come with entering into a joint venture when with an effective joint venture agreement that protects your rights. Whether you are in the process of forming a joint venture, or a dispute has arisen, we can provide you with the skilled legal representation that you need. One of our attorneys can help you understand your rights while negotiating the best possible outcome. Our trial-ready attorneys are prepared to take your case to court when necessary. Contact Woods Lonergan PLLC today to schedule your initial consultation.