Legal Question in Business Law in Delaware

Re: Joint Venture

No, it's just simpler that way in some respects. A JV, however, can take the form of Co. A investing in a line of business or discrete project with Co. B that remains completely on Co. B's books. It becomes harder to unwind and value this form than, for instance, a JV corp. set up by both Co. A and Co. B, for tax purposes, etc.

Questions to ask: what is the purpose of the JV--a one-time project or a long-running joint pursuit of a business opportunity? who will be responsible for managing the JV? is it better to have a neutral 3d-party do it (in which case a sep. corp. with its own ceo/pres. might be better)? what is the exit strategy? who is responsible for taxes? how will the "spoils" be distributed?

Answering these, and other pertinent questions, will help each party to the JV determine the proper structure for the JV itself.

Hope this helps.

Re: Joint Venture

No, a joint venture does not have to take the form of a corporation. There are many options available including partnership, limited liability company, etc.

You may want to discuss w/ a CPA what is the best way to proceed vis-a-vis tax exposure and financial liability.

Good luck.