Joint Venture Agreement Attorney
A joint venture is a corporate partnership formed when two or more parties agree to conduct a business enterprise and equally share in its profits and losses.
Joint ventures are created by an express agreement between the joint venture parties or can be implied from their acts and conduct. The relationship of joint ventures depends on the parties’ intention as manifested by their words and deeds.
The formation and structuring of both a joint venture and the written agreement are critical to any business’s success. At Kelly Legal Group, we listen to your objectives and help design a structure tailored to your joint venture enterprise needs.
From forming a separate legal entity to ownership to sharing risk, we will help you understand all aspects of forming and operating a successful joint venture. We have experience drafting agreements and contracts, negotiating and closing transactions, and resolving disputes arising out of joint ventures.
Our attorneys have extensive knowledge of state and federal laws governing qualified joint ventures. They also understand how these laws apply to specific industries and types of businesses.
If you need legal advice regarding your current or future business interests, call us today at (512) 505-0053 for a free consultation! Let us put our experience to work for you!
Our Joint Venture Services
Joint ventures are all about risk and responsibility sharing. We work with you to assess all possible risks, better understand the venture’s demands, and ensure that the paperwork accurately reflects the underlying express or implied agreement.
Kelly Legal Group lawyers have access to industry experts who can provide valuable insight into the business structure and operation of your particular venture.
We can advise you on:
Ownership Structure
The ownership structure refers to how ownership of an asset is divided among its owners. In this context, ownership means legal rights over the asset. Ownership structures can vary widely depending upon the nature of the assets being transferred and the purposes for which they are used.
An ownership structure is a crucial element of any venture. It determines the rights and responsibilities of each investor. For example, a general partnership is an ownership structure with equal rights and obligations. Partnerships often involve multiple partners in a contractual relationship with varying degrees of control over the venture.
Our attorneys at Kelly Legal Group can help you determine which form of ownership best fits your venture. Our attorneys can draft documents that reflect the proper ownership structure for joint ventures.
Business Plan Preparation
A business plan is essential for starting a venture as a separate business entity. Investors will not invest their money in your venture without a well-developed business plan.
Developing a business plan for a joint venture depends on planning and research. However, if you are considering starting a venture, our attorneys at Kelly Legal Group have experience creating business plans for many different businesses and other joint ventures.
We can provide you with advice about developing a sound business plan. We can also help you create a marketing strategy and financial projections. Call us at (512) 505-0053 for more information.
Drafting Agreements and Joint Venture Contracts
Drafting agreements and contracts in a joint venture are documents that define the terms and conditions under which two parties will work together on a project. These documents can be used to establish ownership rights between the parties, set out the roles of each party, outline how the project will be managed, specify what happens if there is a dispute, and so on.
These agreements are vital because they define the business relationship between the parties and protect them from future disputes. They are also beneficial as a reference point for the parties after the contractual joint venture has begun.
Our business attorneys at Kelley Legal Group can draft these contracts for you. We can also advise you on using them to protect your interests properly.
Negotiating and Closing Transactions
Negotiation is often necessary when forming a joint venture. It is essential to negotiate a fair deal for both sides in a joint venture relationship.
In some cases, one party will offer a higher price for a project while the other party offers a lower price. You should try to get the best possible deal.
You should always ask questions about the terms and conditions of the agreement. The written contract should clearly explain what happens if something goes wrong with this particular project. You’ll want to know if the parties involved have joint control of the venture assets and intellectual property.
It is also essential to discuss the risks involved in the venture. For example, you may want to know whether any hidden costs are associated with the venture.
Our licensed lawyers can help you outline a written joint venture agreement that addresses all matters related to the venture. Our attorneys can also help you close the transaction once everything has been agreed upon.
Tax Considerations
Venture capital investments are subject to taxation. To avoid double taxation, many states require that a partnership be formed within their state.
If the venture is not formed in the state where it exists, the partners may need to pay taxes separately.
Partnerships are taxed differently from corporations. Partnerships do not pay corporate taxes because they are pass-through entities. Instead, each joint venture partner pays individual income taxes on their share of the partnership’s taxable income.
Partnerships are also subject to self-employment tax. Self-employment tax is imposed on the net earnings derived from the individual’s trade or business. This includes any passive activity losses.
Our attorneys at Kelly Legal Group can advise you about forming a partnership with other people and what documentation is needed to keep your investment safe.
Insurance Requirements
An insurance requirement is an obligation that must be met before a joint venture can commence operations. These requirements may include insurance coverage for the joint venture’s employees, contractors, equipment, property, or products.
The insurance requirements vary depending upon the type of venture. Therefore, it is crucial to understand the insurance requirements before investing in a venture. Furthermore, several different types of insurance may cover a venture.
An experienced business lawyer from our law firm can review your current insurance policy and make recommendations regarding new policies. We can also assist you in obtaining additional liability insurance coverage for your venture. Contact us for a free consultation today!
Sharing Risk & Reimbursement
Risk sharing is one of the most critical elements of a joint venture. A good understanding of the venture’s financials and cash flow requirements is essential to allocating risk among investors appropriately.
In addition to risk allocation, reimbursement is another major issue in any venture. This includes whether a partner must pay back money advanced to the venture.
When it comes time to reimburse a partner, our attorneys can ensure that the terms of the agreement are fair and equitable. Our attorneys can also help you negotiate a reimbursement clause if necessary.
Dispute Resolution
If a dispute arises during the venture, it is vital that you have an attorney who understands the legal system and can represent your interests. Conflicts can occur when there is disagreement over the interpretation or application of the venture’s terms.
A dispute resolution process is set up to resolve disputes quickly and fairly. The process typically involves mediation followed by arbitration or litigation.
Mediation is a non-binding process designed to encourage settlement. Parties agree to participate in mediation without admitting liability or fault.
Arbitration is binding and requires all parties to submit their claims to an arbitrator. Arbitrators decide the case based on the evidence presented during the hearing.
Arbitration is generally more expensive than mediation, but can provide faster results. Litigation is usually the last option available to resolve a dispute. If the parties cannot settle their differences through negotiation, mediation, or arbitration, litigation may be required.
Our Texas joint venture agreement lawyers have extensive experience resolving disputes involving ventures and other business entities. We can help you develop a dispute resolution plan appropriate for your business needs.
Why Involve a Joint Venture Attorney?
Many business owners believe they are capable of managing their venture agreements. However, this is not always possible. In addition, some businesses require special expertise because of the venture’s complexity.
For example, many businesses involve real estate, requiring specialized knowledge. In addition, some businesses involve complex financing arrangements. These include venture capital investments, private equity transactions, distribution channels, and debt financings.
Businesses that deal with these matters should hire a joint venture attorney to protect their rights.
A joint venture attorney has many advantages to offer, including:
- Experience with the laws governing joint ventures.
- Knowledge of how the law affects the structure of the venture.
- Ability to advise clients about the best way to organize their venture.
- Assistance in negotiating the terms of the venture agreement.
- Representation in court proceedings.
- Helping to draft documents.
- Negotiating contracts between partners.
- Providing advice on tax implications.
Contact Kelly Legal Group
At Kelly Legal Group, we understand each client’s situation is unique. That’s why we work closely with our clients to ensure that every matter receives the attention and care it deserves. Our firm offers a full range of legal services, from simple wills and powers of attorney to complex corporate matters and limited partnership issues.
We know that choosing a business attorney can be difficult, so we make it easy for you. You can contact us online or call us at (512) 505-0053. We will get back to you promptly.