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Ohio Joint Ventures

Joint Ventures are business arrangements that occur when two owners of two different companies decide that it would be in their mutual interest to begin a new business combining the resource of their two existing businesses. This is typically explored when businesses are not generating profit, or even when there are opportunities to increase profits.

While it may be a mutually beneficial venture it is important to note that ventures can create differing ideas down the line and this can leave you in an uncomfortable positon. Business can be emotional endeavors and when dealing with another individual it can become frustrating, at VanHo Law we want to assist you in drafting the best version of your joint venture that will keep your future in mind.

Differences Between a Joint Venture and a Partnership

While a joint venture is a form of partnership, it differs quite a lot and it is important to understand the differences when dealing with different legal matters. The differences extend to a couple different areas, such as liability and taxes.

When considering liability, partnerships do carry more liability than joint ventures because joint ventures typically are considered limited liability companies (LLCs).

When you are entering into a partnership this typically begins as a personal relationship with a family member or friend, but a joint venture has to do mainly with a business relationship. And like all business this includes taxes.

When considering a joint venture one must be aware of the taxation that comes with the venture because depending on the size and understanding of the venture you may be taxed as a corporation or as a partnership. With partnerships each individual is responsible for their own taxes in relation to the profit generated by the company in question. However, with corporations you could be taxed separately from your company which would effectively qualify you for double taxation.

Contact your Ohio business law attorneys today to avoid any unforeseen circumstances in your joint venture.

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