Legal Question in Business Law in California

Re: joint venture in california

They are two similar but legally different forms of business. You need to consult with someone that can properly advise and help you decide what is best for your business.

Re: joint venture in california

Unlike corporations and LLCs, which are formed under specific laws and either exist or don't, partnerships and joint ventures can be formed intentionally and formally, informally, or even by accident and contrary to the intentions of the partners. A partnership exists because people behave as though they are partners. This is helpful in understanding the relationship between partnerships and joint ventures.

I would say that 99% tp perhaps 100% of the time, a joint venture is a partnership. A joint venture is a special kind of partnership, usually formed for a particular period or time and/or to do a particular project of finite scope and duration.

There may be instances where a cooperative enterprise styled by its members as a "joint venture" is not a partnership, but it is probably prevented from being a partnership by the fact that it is, besides being called a joint venture, another form of entity such as a corporation. Joint venture-like undertakings can be incorporated, in which case they are definitely not partnerships, but then, they probably are joint ventures in name only, and more correctly should be referred to as corporations.

As far as I know, joint ventures that cannot be classed as corporations, LLCs, trusts, or some other recognized formal entity are treated as partnerships under California law.

If an operation calling itself a "joint venture" has the characteristics of a partnership, it is a partnership.

Re: joint venture in california

A joint venture is usually nothing more than a general partnership formed for a particular purpose. The scope of the business is limited to one or more defined projects, whereas a general partnership is more open ended.

I would recommend staying out of joint ventures and general partnerships. Use a corporation, LLC or limited partnership (with a corporate GP) instead.