joint venture marketing
A successful joint venture partnership is one that is equally beneficial to both parties. To ensure that each party’s interest is fully protected throughout the life of a JV partnership, legal documents must be included in the initial setup of the JV entity.
There are a number of legal steps that may need to be taken in establishing a legally binding JV agreement, depending on the size and length of the union you are undertaking. This article will cover a few of the basic legalities to get you started.
Joint venture partners should draw up a contract with one another that precisely defines the terms of the partnership and creates a legally binding agreement to which all parties must adhere. There are a number of options for creating this contract:
- Enlist the services of an attorney who specializes in joint venture agreements
- Utilize online legal services for the purpose of designing an agreement
- Find a template for a JV partnership agreement online that you can complete together
- Write your own contract, including business names, purpose of the partnership, terms you agree upon and signatures and dates
To begin the contractual process, determine the terms of your JV partnership and write them down together. These terms can then be sent to an attorney, where a formal contract is drawn up for both parties to sign. The contract should be specific and complete, so that it protects the interests of all businesses involved and can be used for any potential disputes that might arise.
In some cases, the term for the JV partnership will be clearly laid out in the original contract. In other situations, the partners may agree to continue the arrangement indefinitely. When both partners decide to end the agreement, it may require additional paperwork to divide up the assets accumulated during the life of the partnership.
Forming a Separate Entity
If your JV partnership will form a separate entity that includes both businesses into a single unit, other legal forms might also need to be filed. If the partnership will operate under a separate name, the name must be registered with the state in which you operate. You may also require a separate tax ID number for your JV partnership for the purpose of withholding taxes for employees hired by the partnership. This number can be obtained by filing the proper paperwork with the IRS.
All of these steps can be handled through the JV partners, but you can also hire an attorney to take care of the legalities of establishing the partnership. This trained professional will charge for his services, but you can rest assured the legal work will be handled expeditiously and accurately. If you decide to navigate the legal waters without professional advice, websites of your state government and the IRS will provide the information necessary to complete paperwork and set up your JV partnership correctly.
Joint venture partnerships are a great way to increase business, but they work best when they are established with clear guidelines for all parties involved. Whether you choose to enlist the help of an attorney or complete the necessary paperwork on your own, a legal and binding agreement is the first step to a successful and profitable partnership.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
To discover more joint venture marketing Strategies join his free joint venture marketing Wealth Report.