[{"data":1,"prerenderedAt":482},["ShallowReactive",2],{"document-how-to-create-a-joint-venture-D12563":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":174,"customdescription":6,"mdFm":175,"mdProseHtml":481},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"How to Create a Joint Venture Standard Operating Procedure Department: Management Purpose: A joint venture is a strategic alliance or partnership between two or more parties that allows both parties, usually companies, to increase their ability to build their separate businesses. Joint ventures are commonly used by companies to become active in a new territory and return higher profits by expanding the company's network. Frequency: When needed Procedure: Determine your need for a joint venture. Define your business objective. Research potential partner. Determine if the partner represent a good fit. Prepare and sign a non-disclosure agreement. Decide the format of the joint venture. Draft the joint venture agreement. Determine the management of the joint venture. Define the role of the employees in the new entity. Definition/Explanation: Need: It appear when in your regular business operations, you reach a point when you realize that your business doesn't have the expertise, technology or operations in a specific area. One way to solve this is through a joint venture with another company that has expertise or operations in that missing area. Business objective: What will be the purpose of this new business? When you have an idea, you must determine the business objectives. They must be clear. Describe the purpose of the joint venture that you foresee and identify its goals. This will need to be a document that you can share with potential partners to generate interest. The need for the joint venture should be compelling and self-evident. Partner: You must identify some potential partners. They must be able to complementary to your activities. Maybe it's a competitor or a distributor. Networking in the business community is a useful way to find potential partners. Shop around, meet with other business leaders, and focus on entities that provide the services or already have the expertise that you need. Good fit: Examine the operating structures of the two companies to see if they are compatible",null,"How to Create a Joint Venture","3",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/how-to-create-a-joint-venture-D12563.png","https://templates.business-in-a-box.com/imgs/250px/12563.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12563.xml",{"title":15,"description":6},"how to create a joint venture",[17,20],{"label":18,"url":19},"Business Plan Kit","/templates/business-plan-kit/",{"label":21,"url":22},"Business Procedures","/templates/business-procedures/","How to Create a Joint Venture Template","https://templates.business-in-a-box.com/imgs/400px/12563.png","https://templates.business-in-a-box.com/imgs/600px/12563.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Legal Agreements","/templates/business-legal-agreements/",{"label":36,"url":37},"Partnerships & Joint Ventures","/templates/partnerships-and-joint-ventures/",[39,43,47,51,55,59,63,67,71,75,79,83,87,101,115,130,145,160],{"label":40,"url":41,"thumb":42,"extension":10},"Joint Venture Agreement","/template/joint-venture-agreement-D889","https://templates.business-in-a-box.com/imgs/250px/889.png",{"label":44,"url":45,"thumb":46,"extension":10},"Joint Venture Agreement 2","/template/joint-venture-agreement-2-D888","https://templates.business-in-a-box.com/imgs/250px/888.png",{"label":48,"url":49,"thumb":50,"extension":10},"How to Create a Contract","/template/how-to-create-a-contract-D12746","https://templates.business-in-a-box.com/imgs/250px/12746.png",{"label":52,"url":53,"thumb":54,"extension":10},"How to Create a Business Website","/template/how-to-create-a-business-website-D12562","https://templates.business-in-a-box.com/imgs/250px/12562.png",{"label":56,"url":57,"thumb":58,"extension":10},"How To Create A Wealth Mindset","/template/how-to-create-a-wealth-mindset-D13115","https://templates.business-in-a-box.com/imgs/250px/13115.png",{"label":60,"url":61,"thumb":62,"extension":10},"How To Create A Winning Attitude","/template/how-to-create-a-winning-attitude-D13116","https://templates.business-in-a-box.com/imgs/250px/13116.png",{"label":64,"url":65,"thumb":66,"extension":10},"How to Create a Staffing Plan","/template/how-to-create-a-staffing-plan-D12566","https://templates.business-in-a-box.com/imgs/250px/12566.png",{"label":68,"url":69,"thumb":70,"extension":10},"How to Create a Sales Forecast","/template/how-to-create-a-sales-forecast-D12565","https://templates.business-in-a-box.com/imgs/250px/12565.png",{"label":72,"url":73,"thumb":74,"extension":10},"How to Create a Marketing Plan Guidebook","/template/how-to-create-a-marketing-plan-guidebook-D12534","https://templates.business-in-a-box.com/imgs/250px/12534.png",{"label":76,"url":77,"thumb":78,"extension":10},"How to Create a Performance Improvement Plan","/template/how-to-create-a-performance-improvement-plan-D12564","https://templates.business-in-a-box.com/imgs/250px/12564.png",{"label":80,"url":81,"thumb":82,"extension":10},"How To Create Mission and Vision Statements","/template/how-to-create-mission-and-vision-statements-D13157","https://templates.business-in-a-box.com/imgs/250px/13157.png",{"label":84,"url":85,"thumb":86,"extension":10},"How To Create A Business Budget For Your Business","/template/how-to-create-a-business-budget-for-your-business-D12948","https://templates.business-in-a-box.com/imgs/250px/12948.png",{"description":88,"descriptionCustom":6,"label":89,"pages":8,"size":9,"extension":10,"preview":90,"thumb":91,"svgFrame":92,"seoMetadata":93,"parents":95,"keywords":99,"url":100},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: LETTER OF INTENT-ACQUISITION OF BUSINESS Dear [CONTACT NAME]: This letter (\"Letter of Intent\") sets forth the basic preliminary terms between the Buyer or his nominee and yourselves regarding the purchase of the [SPECIFY] business (the \"Business\") carried on by yourselves. Except as specifically set forth herein, this Letter of Intent shall not constitute an agreement between the parties and no agreement shall be deemed to exist until execution of a definitive purchase agreement. It is proposed that Buyer will acquire certain assets of the Business which Buyer believes to be necessary to the future of the Business, including the warehouse in [CITY/STATE] in which [COMPANY NAME] the Company has invested [AMOUNT] in cash and which has been financed by a mortgage loan of approximately [AMOUNT] granted by the [SPECIFY COMPANY] [CITY/STATE]. Buyer understands that the said warehouse has no other charges or liabilities affecting it other than the said mortgage loan. Buyer may either purchase the warehouse outright or enter into a lease-purchase or instalment transfer of ownership which is satisfactory to both parties. The gross purchase price for the said warehouse will be [AMOUNT]. Buyer may purchase or lease barrels and other equipment currently owned by the Company which are necessary to operate the Business, on a cash or instalment basis agreeable to both parties. The specific assets to be purchased and the amounts to be paid by Buyer in connection with this transaction remain to be negotiated by the parties. This Letter of Intent also evidences the intentions of the parties with respect to the following agreements: Buyer will enter into a [NUMBER]-year employment agreement with [COMPANY NAME], providing for the Company will be responsible for the purchase of [SPECIFY] for Buyer. The agreement will contain the customary terms and conditions found in employment agreements in similar transactions and will provide for the usual non-competition and non-solicitation covenants to be entered into by the Company in favour of Buyer. It is expressly understood that if the contemplated transaction is consummated, the aggregate amount of commission paid or payable to yourselves (net of reasonable expenses acceptable to Buyer) in respect of all purchases of [SPECIFY] made through you from the date of this Letter of Intent to the date of closing, with the exception of commissions earned on the [NUMBER] truckloads of [SPECIFY] to be delivered to Buyer during the week of [DATE] to [DATE], will be applied against remuneration payable to the Company in the first year of his employment agreement. If the contemplated transaction is not consummated, all such commissions paid or payable will be treated as commissions. Buyer will enter into a [NUMBER]-year employment agreement with [EMPLOYEE NAME], providing for the payment of a gross base salary of [ANNUAL SALARY] per year, to be paid weekly, subject to annual review. [EMPLOYEE NAME] will be President of the Business and the employment agreement will provide for health benefits, automobile, expenses and bonus arrangements","Letter of Intent_Acquisition of Business","https://templates.business-in-a-box.com/imgs/1000px/letter-of-intent_acquisition-of-business-D5197.png","https://templates.business-in-a-box.com/imgs/250px/5197.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5197.xml",{"title":94,"description":6},"letter of intent_acquisition of business",[96,98],{"label":33,"url":97},"business-legal-agreements",{"label":33,"url":97},"letter intent_acquisition business","/template/letter-of-intent_acquisition-of-business-D5197",{"description":102,"descriptionCustom":6,"label":103,"pages":8,"size":9,"extension":10,"preview":104,"thumb":105,"svgFrame":106,"seoMetadata":107,"parents":109,"keywords":108,"url":114},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":108,"description":6},"non disclosure agreement nda",[110,111],{"label":33,"url":97},{"label":112,"url":113},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":116,"descriptionCustom":6,"label":117,"pages":118,"size":9,"extension":10,"preview":119,"thumb":120,"svgFrame":121,"seoMetadata":122,"parents":124,"keywords":123,"url":129},"SHAREHOLDERS AGREEMENT This Shareholders Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [FIRST SHAREHOLDER NAME] (the \"First Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [SECOND SHAREHOLDER NAME] (the \"Second Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [THIRD SHAREHOLDER NAME] (the \"Third Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WITNESSETH: WHEREAS, the present distribution of shares of the Company is as follows: Name Number of Shares WHEREAS, in order to insure the harmonious and successful management and control of the Company, and to provide for an orderly and fair disposition of shares of common stock of the Company now or hereafter owned by any Shareholder; NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, and intending to be legally bound, the parties hereby agree as follows: Definitions and organisation of the company \"Offering Shareholder\" means any Shareholder, or his personal representatives, heirs, administrators, and executors, as the case may be, who pursuant to this Agreement must or does offer all or any of his Shares to the Company or the Continuing Shareholders. \"Continuing Shareholders\" means all Shareholders other than an Offering Shareholder. \"Shares\" means shares of Common Stock of the Company now or hereafter owned by any Shareholder. \"Buyer\" means the Company or those Continuing Shareholders who purchase an Offering Shareholder's Shares pursuant to this Agreement. \"Management Shareholder\" means First Shareholder, Second Shareholder and Third Shareholder. ORGANISATION OF THE COMPANY The affairs of the Company will be managed by a board of [NUMBER] directors unless changed by a unanimous Directors' Resolution. The present directors of the Company are [DIRECTORS' NAMES]. It is agreed that [SHAREHOLDERS' NAMES] shall each be entitled to elect one director to the board of directors of the Company so long as each is a Shareholder. Two (2) directors shall constitute a quorum for the transaction of any business at any meeting of the board of directors. At all meetings of the board of directors, every motion to be carried must receive a majority of the votes cast, subject to the provisions of subparagraphs 2.4 and 2.5. Unless otherwise agreed, board meetings will be held at the head office of the Company. In the event that a nominee to the Board of one of the Shareholders shall fail to vote and act as a director to carry out the provisions of this agreement, then the shareholders agree to exercise their right as shareholders of the Company and in accordance with the Articles of the Company to remove such nominee from the Board and to elect in the place or stead thereof such individual who will use his/her best efforts to carry out the provisions of this agreement but only in the event that the Shareholder whose nominee has been removed fails to appoint a successor within a period of fourteen days from the date such nominee has been removed. The election, appointment and determination of officers and the auditors and advisors of the Company, the defining of their duties and functions and the salaries and remuneration to be paid to them will be a function of the board of directors. Until changed by the board of directors, the Officers of the Company and their annual salaries shall be: Office Held: Director: [NAME] [SALARY] Secretary: [NAME] [SALARY] All direct out-of-pocket expenses will be reimbursed provided these falls within guidelines set out by the Board of Directors from time to time. Until otherwise agreed, each officer of the Company will commit to spending his/her full time on the affairs of the Company. Until changed by the board of directors, the auditors and advisors of the Company shall be: Auditor: Legal Advisors: There shall be kept, in such bank or banks (including trust companies) as may be determined by the board of directors, bank accounts of the Company in which shall be deposited all monies received by the Company in the course of carrying on business from time to time. All payments on account of the Company shall be made by cheques drawn on the bank account and all cheques, drafts or other instruments drawn and made for the purposes of the business of the Company shall be executed by such directors, officers or employees as may from time to time be authorized so to do by the board of directors. Subject to paragraph 2.6, all decisions relating to the management and control of the business of the Company shall be determined by the board of directors of the Company, provided always that the following matters shall be determined by a Special Directors' Resolution: any capital expenditures greater than xxxx; any lease commitments greater than xxxx; the acquisition of any business interests by the Company; the elections of officers of the Company; the payment of any cash dividends or stock dividends to Shareholders of the Company; the issuance of any debt obligations of the Company; the disposal of the whole or any part of the business, undertaking, or assets of the Company outside the normal course of business of the Company the transfer of any shares of the Company; changes or variations in the objects or powers of the Company; the liquidation or winding up of the Company; the approval of any contracts or transactions outside the normal course of business; the execution of any contract involving a consideration greater than xxxx within the normal course of business; the lending of money by the Company; the guarantee by the Company of the debts or obligations of any other person, firm or body corporate; any non-budgeted expenditures greater than xxxx; business plan and/or budgets. The following decisions shall be determined by a Unanimous Directors' Resolution: alterations, variations or changes to the authorized or issued capital of the Company; the salaries and bonuses of officers and directors of the Company; the issue, redemption or purchase of any Shares; and changes in the number of directors of the Company The Shareholders may pledge any of their Shares as security for any borrowings by them provided the pledgee executes an agreement, in writing, providing that the pledgee shall be subject to all of the terms of this Agreement. The board of directors shall meet at least four times during each fiscal year of the Company. Any director can call a meeting provided 10 days notice is given. Notice may be waived. During the first year from the date of this agreement, the board of directors shall meet on a monthly basis. Directors may elect to attend a board meeting by telephone conference call. Each Shareholder shall, for so long as s/he is the owner of shares of the Company devote such of his/her business, time and energy as may be reasonably required to carry on the business of the Company and the Shareholder shall use his/her best efforts, skill and abilities to promote the interests of the Company. Each Shareholder agrees that he/she will not engage, without the consent of the other Shareholders, in a business which is directly competitive to that of the Company. Purchase for Investment","Shareholders Agreement","16","https://templates.business-in-a-box.com/imgs/1000px/shareholders-agreement-D1016.png","https://templates.business-in-a-box.com/imgs/250px/1016.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1016.xml",{"title":123,"description":6},"shareholders agreement",[125,126],{"label":33,"url":97},{"label":127,"url":128},"Incorporation Agreements","incorporation-agreement","/template/shareholders-agreement-D1016",{"description":131,"descriptionCustom":6,"label":132,"pages":133,"size":9,"extension":10,"preview":134,"thumb":135,"svgFrame":136,"seoMetadata":137,"parents":139,"keywords":138,"url":144},"PARTNERSHIP AGREEMENT This Partnership Agreement (\"Agreement\") is made and effective this [Date], BETWEEN: [YOUR COMPANY NAME] (the \"First Partner\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTNER NAME] (the \"Second Partner\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] RECITALS Partners desire to join together for the pursuit of common business goals. Partners have considered various forms of joint business enterprises for their business activities. Partners desire to enter into a partnership agreement as the most advantageous business form for their mutual purposes. The parties hereto agree to form a limited partnership (the \"Partnership\") under [LAW, CODE OR ACT]. In consideration of the mutual promises contained in this agreement, partners agree as follows: NAME AND DOMICILE The name of the partnership shall be [name]. The principal place of business shall be at [address], [city], [state/province], unless relocated by consent of the partners. Purposes Subject to the limitations set forth in this Agreement, the purposes of the Partnership are to engage in the business of [DESCRIBE ACTIVITIES]; and to conduct other activities as may be necessary or incidental to or desirable in connection with the foregoing. DURATION OF AGREEMENT The term of this agreement shall be for [number] years, commencing on [date], and terminating on [date], unless sooner terminated by mutual consent of the parties or by operation of the provisions of this agreement. CLASSIFICATION AND PERFORMANCE BY PARTNERS Partners shall be classified as active partners, advisory partners, or estate partners. An active partner may voluntarily become an advisory partner, may be required to become one irrespective of age, and shall automatically become one after attaining the age of [age] years, and in each case shall continue as such for [number] years unless the partner sooner withdraws or dies. If an active partner dies, the partner's estate will become an estate partner for [number] years. If an advisory partner dies within [Number] years of having become an advisory partner, the partner will become an estate partner for the balance of the [number]-year period. Only active partners shall have any vote in any partnership matter. At the time of the taking effect of this partnership agreement, all the partners shall be active partners except [name] and [name], who shall be advisory partners. An active partner, after attaining the age of [age] years, or prior to that age if the [executive committee or as the case may be] with the approval of [two-thirds or as the case may be] of all the other active partners determines that the reason for the change in status is bad health, may become an advisory partner at the end of any calendar month on giving [number] calendar months' prior notice in writing of the partner's intention to do so. The notice shall be deemed to be sufficient if sent by registered mail addressed to the partnership at its principal office at [address], [city], [state/province] not less than [number] calendar months prior to the date when the change is to become effective. Any active partner may at any age be required to become an advisory partner at any time if the [executive committee or as the case may be] with the approval of [two-thirds or as the case may be] of the other active partners shall decide that the change is for any reason in the best interests of the partnership, provided notice of the decision shall be given in writing to the partner. The notice shall be signed by the [chairman or as the case may be] of the [executive committee or as the case may be] or, in the event of his or her being unable to sign at the time, by another member of the [executive committee or as the case may be]. The notice shall be served personally on the partner required to change his or her status or mailed by registered mail to the partner's last known address. Change of the partner's status shall become effective as of the date specified in the notice. Every active partner shall automatically and without further act become an advisory partner at the end of the fiscal year in which the partner's birthday occurs. In the event that an active partner becomes an advisory partner or dies, the partner or the partner's estate shall be entitled to the following payments at the following times: [describe] Each active partner shall apply all of the partner's experience, training, and ability in discharging the partner's assigned functions in the partnership and in the performance of all work that may be necessary or advantageous to further the business interests of the partnership. CONTRIBUTION Each partner shall contribute [amount] on or before [date] to be used by the partnership to establish its capital position. Any additional contribution required of partners shall only be determined and established in accordance with Article Nineteen. MANAGEMENT OF THE PARTNERSHIP The Partnership shall be managed by [SPECIFY]. Subject to the limitations specifically contained in this Agreement, [PARTY MANAGING THE PARTNERSHIP] shall have the full, exclusive and absolute right, power and authority to manage and control the Partnership and the property, assets and business thereof. [PARTY MANAGING THE PARTNERSHIP] shall have all of the rights, powers and authority conferred by law or under other provisions of this Agreement. Without limiting the generality of the foregoing, such powers include the right on behalf of the Partnership, in [PARTY MANAGING THE PARTNERSHIP]' sole discretion, to: Acquire, purchase, renovate, improve, and own any property or assets necessary or appropriate or in the best interests of the business of the Partnership, and to acquire options for the purchase of any such property; Borrow money, issue evidences of indebtedness in connection therewith, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any indebtedness or obligation of the Partnership, and secure such indebtedness by mortgage, deed of trust, pledge or other lien on Partnership assets; Sue on, defend or compromise any and all claims or liabilities in favor of or against the Partnership and to submit any or all such claims or liabilities to arbitration; File applications, communicate and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership's assets or any part thereof or any other aspect of the Partnership business; Retain services of any kind or nature in connection with the Partnership business, and to pay therefore such remuneration deem reasonable and proper; and Perform any and all other acts deem necessary or appropriate to the Partnership business. TRANSFER OF PARNERSHIP INTERESTS Restrictions on Transfer None of the Partners shall sell, assign, transfer, mortgage, encumber, or otherwise dispose of the whole or part of that Partner's interest in the Partnership, and no purchaser or other transferee shall have any rights in the Partnership as an assignee or otherwise with respect to all or any part of that Partnership interest attempted to be sold, assigned, transferred, mortgaged, encumbered, or otherwise disposed of, unless and to the extent that the remaining Partner(s) have given consent to such sale, assignment, transfer, mortgage, or encumbrance, but only if the transferee forthwith assumes and agrees to be bound by the provisions of this Agreement and to become a Partner for all purposes hereof, in which event, such transferee shall become a substituted partner under this Agreement.","Partnership Agreement","8","https://templates.business-in-a-box.com/imgs/1000px/partnership-agreement-D12551.png","https://templates.business-in-a-box.com/imgs/250px/12551.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12551.xml",{"title":138,"description":6},"partnership agreement",[140,141],{"label":33,"url":97},{"label":142,"url":143},"Partnership Agreements","partnership-agreement","/template/partnership-agreement-D12551",{"description":146,"descriptionCustom":6,"label":147,"pages":8,"size":148,"extension":10,"preview":149,"thumb":150,"svgFrame":151,"seoMetadata":152,"parents":153,"keywords":158,"url":159},"LICENSE AGREEMENT This License Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Indemnitor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [LICENSEE NAME] (the \"Indemnitee\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] In consideration of the mutual promises contained in this agreement, the parties agree as follows: GRANT OF LICENSE; DESCRIPTION OF PREMISES Licensor grants to licensee a license to occupy and use, subject to all of the terms and conditions of this agreement, the following described property located in [CITY], [STATE/PROVINCE]: [insert legal description]. LIMITATION TO DESCRIBED PURPOSE The above-described property may be occupied and used by licensee solely for [specify primary purpose(s)] and for incidental purposes related to such purpose during the period beginning [date], and continuing until this agreement is terminated as provided in this agreement. PERIODIC PAYMENTS Licensee shall pay licensor for this license at the rate of [AMOUNT] per [month] payable in advance. The first payment shall be made on the date of the beginning of the period specified above. Subsequent payments shall be made in advance promptly on the [day of each month] thereafter during the continuation of this agreement. VARIABLE PAYMENTS In addition to making the payments provided for in Section Three of this agreement, licensee shall make payments based on the extent of utilization of the above-described property. Such payments shall be at the rate of [SPECIFY]. The first payment under this provision shall cover the period from and including [date], to and including [date], and shall be due and payable on [date]. Subsequent payments shall cover [NUMBER] intervals after [date], and each such payment shall be due and payable [NUMBER] days after the expiration of the [TIME] interval to which it is applicable. All payments shall be supported by appropriate statements certified by licensee. TERMINATION Either party may terminate this agreement at any time, without regard to payment periods by giving written notice to the other, specifying the date of termination, such notice to be given not less than [NUMBER] days prior to the date specified in such notice for the date of termination. Should the above-described property, or any essential part of such property, be totally destroyed by fire or other casualty, this agreement shall immediately terminate; and, in the case of partial destruction, this agreement may be terminated by either party by giving written notice to the other, specifying the date of termination, such notice to be given within [NUMBER] days following such partial destruction and not less than [NUMBER] days prior to the termination date specified in such notice.","License Agreement",43,"https://templates.business-in-a-box.com/imgs/1000px/license-agreement-D1180.png","https://templates.business-in-a-box.com/imgs/250px/1180.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1180.xml",{"title":6,"description":6},[154,155],{"label":33,"url":97},{"label":156,"url":157},"License Agreements","license-agreement","license agreement","/template/license-agreement-D1180",{"description":161,"descriptionCustom":6,"label":162,"pages":163,"size":9,"extension":10,"preview":164,"thumb":165,"svgFrame":166,"seoMetadata":167,"parents":169,"keywords":172,"url":173},"MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (\"MOU\"), is made and entered into as of [EFFECTIVE DATE], BETWEEN: [PARTY A] (the \"Company\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [PARTY B] (PARTNER/RESELLER], an individual with his main address located at [SPECIFY] OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] PURPOSE AND SCOPE The purpose of this MOU is to clearly identify the roles and responsibilities of each party as they relate to [ SPECIFY]. In particular, this MOU in intended to [SPECIFY OR DESCRIBE THE WAY IN WHICH THE PARTIES WILL COLLABORATE]. BACKGROUND [Brief description of the parties involved in the MOU with mention of any current/historical ties to this project] [PARTY A] RESPONSIBILITIES UNDER THIS MOU [PARTY A] shall undertake the following activities: [SPECIFY AND EXPLAIN] [PARTY B] RESPONSIBILITIES UNDER THIS MOU [Party B] shall undertake the following activities: [SPECIFY AND EXPLAIN] UNDERSTANDINGS","Memorandum of Understanding","2","https://templates.business-in-a-box.com/imgs/1000px/memorandum-of-understanding-D12548.png","https://templates.business-in-a-box.com/imgs/250px/12548.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12548.xml",{"title":168,"description":6},"memorandum of understanding",[170,171],{"label":33,"url":97},{"label":33,"url":97},"memorandum understanding","/template/memorandum-of-understanding-D12548",false,{"seo":176,"reviewer":186,"legal_disclaimer":174,"quick_facts":190,"at_a_glance":192,"personas":196,"variants":221,"glossary":247,"sections":281,"how_to_fill":327,"common_mistakes":368,"faqs":385,"industries":413,"comparisons":430,"diy_vs_pro":443,"educational_modules":456,"related_template_ids_curated":459,"schema":468,"classification":470},{"meta_title":177,"meta_description":178,"primary_keyword":15,"secondary_keywords":179},"How To Create A Joint Venture Template | BIB","Free joint venture creation guide template. Covers partner selection, structure, governance, profit sharing, and exit terms.",[180,181,182,183,184,185],"joint venture template","joint venture plan template","joint venture proposal template","how to set up a joint venture","joint venture structure guide","joint venture business plan",{"name":187,"credential":188,"reviewed_date":189},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":191,"legal_review_recommended":174,"signature_required":174},"advanced",{"what_it_is":193,"when_you_need_it":194,"whats_inside":195},"A How To Create A Joint Venture guide is a structured operational document that walks two or more businesses through every planning decision required before formalizing a joint venture — from partner evaluation and structure selection to governance, profit sharing, and exit provisions. This free Word download gives you a step-by-step framework you can edit online and export as PDF to align all parties before lawyers draft the binding agreement.\n","Use it when two or more businesses are exploring a formal collaboration to pursue a shared opportunity — entering a new market, co-developing a product, bidding on a large contract, or combining complementary capabilities — and need a clear operational plan before committing resources.\n","Partner assessment criteria, JV structure options with decision guidance, governance and management framework, capital contribution and profit-sharing model, IP and resource allocation, risk management, and exit and dissolution provisions — all organized into a logical sequence that produces a decision-ready planning document.\n",[197,201,205,209,213,217],{"title":198,"use_case":199,"icon_asset_id":200},"Business development executives","Structuring a partnership proposal to present to a prospective JV partner","persona-business-development",{"title":202,"use_case":203,"icon_asset_id":204},"Small business owners","Planning a market-entry collaboration with a complementary local business","persona-small-business-owner",{"title":206,"use_case":207,"icon_asset_id":208},"Startup founders","Formalizing a co-development arrangement with a larger industry player","persona-startup-founder",{"title":210,"use_case":211,"icon_asset_id":212},"Operations directors","Documenting the internal planning steps before legal counsel is engaged","persona-operations-director",{"title":214,"use_case":215,"icon_asset_id":216},"Corporate strategy teams","Evaluating JV structures against alternatives like acquisitions or licensing","persona-ceo",{"title":218,"use_case":219,"icon_asset_id":220},"Government contractors","Forming a teaming arrangement to meet contract eligibility requirements","persona-contractor",[222,226,229,233,236,240,243],{"situation":223,"recommended_template":224,"slug":225},"Two companies co-developing a new product or technology","How To Create A Joint Venture","how-to-create-a-joint-venture-D12563",{"situation":227,"recommended_template":40,"slug":228},"Formalizing the JV with a binding legal agreement","joint-venture-agreement-D889",{"situation":230,"recommended_template":231,"slug":232},"Two companies collaborating on a single project without forming an entity","Strategic Alliance Agreement","strategic-alliance-and-supply-agreement-D5205",{"situation":234,"recommended_template":147,"slug":235},"One company licensing technology or IP to another for shared commercialization","license-agreement-D1180",{"situation":237,"recommended_template":238,"slug":239},"Two companies exploring a potential JV before committing","Letter of Intent","letter-of-intent_acquisition-of-business-D5197",{"situation":241,"recommended_template":117,"slug":242},"Defining each partner's contribution and ownership stake in a new entity","shareholders-agreement-D1016",{"situation":244,"recommended_template":245,"slug":246},"Sharing confidential information during JV due diligence","Non-Disclosure Agreement","non-disclosure-agreement-nda-D12692",[248,251,254,257,260,263,266,269,272,275,278],{"term":249,"definition":250},"Joint Venture (JV)","A business arrangement in which two or more parties pool resources to pursue a specific project or opportunity, sharing profits, losses, and control as agreed.",{"term":252,"definition":253},"Contractual JV","A joint venture that operates under a contract between the parties without creating a separate legal entity — each party retains its own legal identity.",{"term":255,"definition":256},"Incorporated JV","A joint venture structured as a newly formed legal entity (typically a company or LLC) owned jointly by the participating parties.",{"term":258,"definition":259},"Capital Contribution","The cash, assets, IP, or services each party commits to the joint venture at formation, which typically determines ownership percentage.",{"term":261,"definition":262},"Governance Framework","The rules defining how the JV makes decisions — who sits on the management committee, voting thresholds, and reserved matters requiring unanimous consent.",{"term":264,"definition":265},"Deadlock Provision","A mechanism that resolves situations where JV partners cannot agree on a material decision — options include mediation, a casting vote, or a buy-sell trigger.",{"term":267,"definition":268},"Profit-Sharing Ratio","The percentage of net profits (and losses) allocated to each JV partner, which may or may not equal their ownership percentage.",{"term":270,"definition":271},"Drag-Along Right","A provision allowing a majority JV partner to compel the minority to sell their interest if a buyer for the whole JV is found.",{"term":273,"definition":274},"Tag-Along Right","A provision allowing a minority JV partner to join a sale of the majority partner's interest on the same terms.",{"term":276,"definition":277},"Non-Compete (within JV context)","A restriction preventing JV partners from independently pursuing the same business opportunity that the JV was formed to address.",{"term":279,"definition":280},"Exit Mechanism","A predefined method for a partner to leave the JV — buyout, sale to a third party, dissolution, or put/call options.",[282,287,292,297,302,307,312,317,322],{"name":283,"plain_english":284,"sample_language":285,"common_mistake":286},"Executive overview and JV rationale","States the strategic purpose of the joint venture, the specific opportunity being pursued, and why a JV structure is preferred over alternatives like acquisition or organic growth.","[COMPANY A] and [COMPANY B] propose to form a joint venture to pursue [OPPORTUNITY] in the [MARKET/GEOGRAPHY]. A JV structure is preferred because [RATIONALE — e.g., shared risk, complementary capabilities, regulatory requirement].","Describing the JV only in aspirational terms without articulating why a JV specifically — rather than a licensing deal or acquisition — is the right structure. Partners who cannot explain the structure choice often discover mid-planning that a simpler arrangement would suffice.",{"name":288,"plain_english":289,"sample_language":290,"common_mistake":291},"Partner assessment and compatibility","Documents each party's capabilities, resources, reputation, and strategic alignment, and identifies any gaps or risks in the partnership before committing.","[COMPANY A] contributes: [CAPABILITY/ASSET]. [COMPANY B] contributes: [CAPABILITY/ASSET]. Identified compatibility risks: [RISK 1], [RISK 2]. Due diligence required: [LIST].","Skipping formal due diligence on the prospective partner's financial health and litigation history. Discovering a partner's undisclosed liabilities after forming the JV entity can trap the other party in a costly unwind.",{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"JV structure selection","Evaluates the two primary options — contractual JV versus incorporated JV — against the project's duration, liability requirements, tax profile, and regulatory environment, then documents the chosen structure with supporting rationale.","Selected structure: [Incorporated JV / Contractual JV]. Entity type: [LLC / CORPORATION / PARTNERSHIP]. Jurisdiction of formation: [JURISDICTION]. Rationale: [TAX / LIABILITY / REGULATORY REASON].","Defaulting to an incorporated JV without analyzing the tax consequences. In some jurisdictions, a separate entity triggers double taxation on distributed profits — a contractual JV or pass-through entity may be significantly more efficient.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Capital contributions and ownership","Defines what each party contributes at formation — cash, equipment, IP, personnel, or services — the agreed valuation of non-cash contributions, and the resulting ownership percentages.","[COMPANY A] contribution: $[AMOUNT] cash + [IP/ASSET] valued at $[AMOUNT]. [COMPANY B] contribution: $[AMOUNT] cash + [SERVICES/ASSET] valued at $[AMOUNT]. Resulting ownership: [COMPANY A] [X]%, [COMPANY B] [X]%.","Agreeing on ownership percentages before valuing non-cash contributions. A partner contributing IP or distribution networks at an inflated self-assessed value can distort the ownership split and generate disputes once operations begin.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Governance and management structure","Establishes the management committee composition, voting rights, quorum requirements, reserved matters requiring unanimous consent, and the day-to-day management arrangement.","Management Committee: [X] representatives from [COMPANY A], [X] from [COMPANY B]. Ordinary resolutions: simple majority. Reserved matters (requiring unanimous consent): [LIST — e.g., annual budget, new debt, change of scope]. Day-to-day management: [DESIGNATED MANAGER / TITLE].","No reserved-matters list and equal voting rights between 50/50 partners. This guarantees deadlock on any significant decision and has no resolution mechanism — the JV becomes operationally paralyzed within months.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Profit sharing, distributions, and accounting","Sets the profit-sharing ratio, distribution frequency and triggers, the accounting standards to be used, the JV's fiscal year, and audit rights.","Profits distributed: [QUARTERLY / ANNUALLY] after maintaining a minimum cash reserve of $[AMOUNT]. Distribution ratio: [COMPANY A] [X]%, [COMPANY B] [X]%. Accounting standard: [GAAP / IFRS]. Audited financials required if annual revenue exceeds $[THRESHOLD].","Setting the profit-sharing ratio equal to the ownership ratio without considering that one partner may be providing ongoing management services. Uncompensated management contribution creates resentment and incentive misalignment within 12–18 months.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"IP ownership, licensing, and confidentiality","Allocates ownership of IP brought into the JV by each party, defines ownership of IP created by the JV during operations, and establishes confidentiality obligations for shared information.","Pre-existing IP contributed by [COMPANY A]: licensed (not assigned) to the JV for the duration. Pre-existing IP contributed by [COMPANY B]: [LICENSED / ASSIGNED]. Newly created JV IP: owned [JOINTLY / BY JV ENTITY / BY [PARTY]]. Confidentiality obligation: [X] years post-termination.","Leaving newly created IP ownership unresolved. When the JV ends, both parties may claim ownership of jointly developed technology — triggering litigation that costs more than the JV ever earned.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Risk allocation and liability","Identifies the primary operational, financial, regulatory, and reputational risks of the JV, assigns responsibility for managing each, and sets contribution obligations if the JV incurs losses beyond initial capital.","Risk: [RISK TYPE]. Owner: [COMPANY A / COMPANY B / SHARED]. Loss contribution trigger: if JV losses exceed $[AMOUNT], each party contributes additional capital pro rata to ownership. Liability cap per party: $[AMOUNT] above initial contribution.","Treating risk allocation as symmetric by default. In practice, one partner usually has greater operational control and should bear proportionally more operational risk — mismatched risk and control is a primary cause of JV disputes.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Exit mechanisms and dissolution","Defines the conditions and process for a partner to exit the JV — voluntary buyout, forced transfer, change-of-control triggers, and full dissolution — including valuation methodology and wind-down responsibilities.","Voluntary exit: [X] months written notice. Buyout valuation: [EBITDA multiple of X / independent appraiser / agreed formula]. Change-of-control trigger: if [COMPANY A or B] is acquired, remaining partner has right of first refusal at [VALUATION METHOD]. Dissolution: assets distributed pro rata after satisfying all JV liabilities.","No agreed valuation methodology for buyouts. When one partner wants to exit, the absence of a formula means both parties hire competing appraisers, negotiate for months, and often end up in arbitration — at a cost that frequently exceeds the buyout value itself.",[328,333,338,343,348,353,358,363],{"step":329,"title":330,"description":331,"tip":332},1,"Define the JV's strategic purpose and scope","Write a one-paragraph statement of the specific opportunity the JV will pursue, the geographic or product scope, and the planned duration. Keep it narrow — broad scope creates governance disputes later.","If you cannot write the purpose statement in two sentences, the JV concept is not yet defined clearly enough to proceed.",{"step":334,"title":335,"description":336,"tip":337},2,"Assess each partner's contributions and due diligence","List every asset, capability, and resource each party brings to the JV. Conduct basic due diligence — financials, litigation history, regulatory standing — on the prospective partner before completing this section.","Request the last two years of audited financial statements from any prospective partner contributing more than 25% of JV capital.",{"step":339,"title":340,"description":341,"tip":342},3,"Select and document the JV structure","Choose between a contractual JV and an incorporated entity. Document the rationale — tax treatment, liability exposure, regulatory requirements — and the proposed jurisdiction if incorporating.","Consult a tax advisor before selecting an incorporated structure. Pass-through entities (LLCs, partnerships) avoid double taxation in most common JV scenarios.",{"step":344,"title":345,"description":346,"tip":347},4,"Agree and document capital contributions","List each party's cash and non-cash contributions with agreed valuations. Get independent valuations for non-cash items (IP, equipment, real estate) before finalizing ownership percentages.","Document the valuation methodology for non-cash contributions — not just the agreed number. This prevents retroactive disputes about whether the valuation was accurate.",{"step":349,"title":350,"description":351,"tip":352},5,"Build the governance framework","Define management committee composition, voting thresholds, and a reserved-matters list. For any 50/50 JV, add an explicit deadlock resolution mechanism — such as escalation to CEOs, followed by mediation, then a buy-sell trigger.","Draft the reserved-matters list by asking: 'What decisions, if made without my input, would I consider a breach of the partnership?' That list is your reserved matters.",{"step":354,"title":355,"description":356,"tip":357},6,"Set profit-sharing, distribution, and accounting terms","Agree on the distribution ratio, minimum cash reserve before distributions are triggered, distribution frequency, and which accounting standard the JV will follow.","If one partner is providing management services to the JV, consider a management fee paid before profit distribution so that the working partner is compensated separately from passive investors.",{"step":359,"title":360,"description":361,"tip":362},7,"Allocate IP and define confidentiality obligations","Clearly label each IP item as licensed-in, contributed/assigned, or newly created during JV operations. State explicitly who owns newly created IP and what happens to it upon dissolution.","Use an IP schedule annexed to the plan listing every item of pre-existing IP by name, owner, and license terms — do not leave any item in an 'understood' category.",{"step":364,"title":365,"description":366,"tip":367},8,"Document exit mechanisms and dissolution terms","Agree on the buyout valuation formula, notice periods, change-of-control triggers, and dissolution procedure before presenting the plan to legal counsel for drafting into a binding agreement.","The valuation formula you agree to in this planning document will be the hardest provision to renegotiate later — spend disproportionate time on it now.",[369,373,377,381],{"mistake":370,"why_it_matters":371,"fix":372},"No deadlock mechanism in a 50/50 JV","Equal ownership with no tie-breaker means any major disagreement between partners can halt operations indefinitely. Courts are reluctant to dissolve a JV over internal disputes, leaving both parties stuck.","Add an explicit deadlock mechanism — escalation to CEOs for 30 days, then mediation, then a buy-sell (shotgun) clause that allows either party to trigger a buyout at a stated price.",{"mistake":374,"why_it_matters":375,"fix":376},"Leaving newly created IP ownership undefined","Both parties may claim full ownership of jointly developed technology or products when the JV ends, resulting in litigation that can cost more than the JV generated.","Assign ownership of newly created IP explicitly in the planning document — either to the JV entity, to a designated party, or on a defined split — before drafting the formal agreement.",{"mistake":378,"why_it_matters":379,"fix":380},"Agreeing on ownership percentages before valuing non-cash contributions","Overvalued IP or assets inflate one partner's ownership stake, creating an imbalanced arrangement that breeds resentment once the JV is operational.","Obtain independent valuations for all non-cash contributions before finalizing the ownership split. Document the methodology, not just the agreed figure.",{"mistake":382,"why_it_matters":383,"fix":384},"Defining JV scope too broadly","An overly broad scope — 'any opportunity in the technology sector' — creates ambiguity about what activities are inside or outside the JV, leading to disputes about whether a partner's independent activities constitute a conflict.","Define scope by specific product, service, geography, and customer segment. Include an explicit list of activities each party may continue independently without triggering a conflict.",[386,389,392,395,398,401,404,407,410],{"question":387,"answer":388},"What is a joint venture?","A joint venture is a business arrangement in which two or more independent companies agree to pool resources, share risks, and collaborate on a specific project or market opportunity. Unlike a merger, each party retains its separate legal identity. JVs may operate under a contract alone or through a newly formed legal entity, depending on the scale and duration of the collaboration.\n",{"question":390,"answer":391},"What is the difference between a contractual JV and an incorporated JV?","A contractual JV operates under a written agreement between the parties without creating a new legal entity — each company remains legally separate and transacts in its own name. An incorporated JV forms a new company or LLC owned jointly by the partners. Incorporated JVs offer cleaner liability separation and easier third-party contracting but add administrative overhead and can trigger double taxation on distributed profits if structured as a corporation.\n",{"question":393,"answer":394},"How is profit shared in a joint venture?","Profit sharing is agreed by the parties and documented in the JV agreement — it does not have to match the ownership percentage. Common models include pro-rata distribution based on capital contribution, a management fee paid to the operating partner before profit split, or a tiered return where one party recoups its investment before profits are shared. The distribution ratio, minimum reserve thresholds, and distribution frequency should all be documented before operations begin.\n",{"question":396,"answer":397},"Who controls a joint venture?","Control is defined in the governance framework agreed by the parties. Typically, a management committee with representatives from each partner makes major decisions, while a designated managing partner or hired management team handles day-to-day operations. Reserved matters — major expenditures, new debt, change of scope — require unanimous or supermajority approval. In a 50/50 JV, a deadlock mechanism is essential to prevent governance paralysis.\n",{"question":399,"answer":400},"What happens to intellectual property in a joint venture?","Pre-existing IP brought into the JV is typically licensed to the JV rather than transferred, so each party retains ownership if the collaboration ends. IP created during JV operations — new products, code, processes — must be explicitly allocated in the agreement to either the JV entity, a specific partner, or both jointly. Leaving IP ownership ambiguous is one of the most common and costly sources of JV disputes.\n",{"question":402,"answer":403},"How do you exit a joint venture?","Exit mechanisms should be agreed before the JV launches and documented in the planning guide and the formal agreement. Common options include voluntary buyout with agreed notice, a buy-sell (shotgun) clause, sale to a third party subject to right of first refusal, or full dissolution with asset distribution. The valuation methodology for buyouts — EBITDA multiple, independent appraiser, or agreed formula — should be locked in at formation, not negotiated under duress when a partner wants to leave.\n",{"question":405,"answer":406},"Do I need a lawyer to create a joint venture?","This planning template handles the operational and strategic decisions that need to be resolved before legal drafting begins. Once you have aligned on structure, governance, profit sharing, IP, and exit terms using this guide, engaging a lawyer to draft the binding JV agreement is strongly recommended — especially for incorporated JVs, JVs involving material IP, or cross-border arrangements. A well-prepared planning document typically cuts legal drafting time and fees by 30–50%.\n",{"question":408,"answer":409},"What is the most common reason joint ventures fail?","Governance disputes are the leading cause of JV failure, typically driven by three root issues: unclear decision-making authority with no deadlock mechanism, misaligned expectations about profit distribution that were never written down, and scope creep where partners pursue conflicting interests inside or outside the JV. Completing a thorough planning document before forming the entity forces these issues into the open while they are still easy to resolve.\n",{"question":411,"answer":412},"How long does it take to set up a joint venture?","A straightforward contractual JV between two domestic companies can be operational in 4–8 weeks once both parties agree on terms. An incorporated JV typically takes 8–16 weeks to allow for entity formation, regulatory filings, and bank account setup. Cross-border JVs involving regulatory approvals, foreign investment reviews, or complex IP transfers can take 6–12 months. Using a structured planning template compresses the pre-legal alignment phase from weeks to days.\n",[414,418,422,426],{"industry":415,"icon_asset_id":416,"specifics":417},"Construction and Infrastructure","industry-construction","Project-specific JVs formed to bid on large contracts, with profit splits tied to work package allocation and liability shared pro-rata to contract value.",{"industry":419,"icon_asset_id":420,"specifics":421},"Technology / SaaS","industry-saas","Co-development JVs where IP allocation and ownership of jointly developed software or algorithms is the critical planning variable.",{"industry":423,"icon_asset_id":424,"specifics":425},"Healthcare and Life Sciences","industry-healthtech","Clinical development and commercialization JVs with complex IP licensing, milestone-based capital calls, and regulatory approval as a key exit trigger.",{"industry":427,"icon_asset_id":428,"specifics":429},"Manufacturing","industry-manufacturing","Market-entry JVs combining a foreign company's product with a local partner's distribution and regulatory relationships, with governance balanced between operational and local expertise.",[431,434,437,440],{"vs":40,"vs_template_id":432,"summary":433},"D{JOINT_VENTURE_AGREEMENT_ID}","A joint venture agreement is the binding legal contract that formalizes the JV once all parties have agreed on terms. This planning guide is the operational document you complete before engaging lawyers — it aligns partners on structure, governance, profit sharing, and exit so the agreement drafting is efficient and disputes surface before costs are committed.",{"vs":231,"vs_template_id":435,"summary":436},"D{STRATEGIC_ALLIANCE_ID}","A strategic alliance is a looser collaboration in which companies cooperate on a specific activity — co-marketing, referrals, or joint sales — without pooling capital or forming a shared entity. A joint venture involves shared capital contribution, shared profits and losses, and formal governance. Use a strategic alliance when the collaboration is limited in scope and neither party is contributing significant capital or IP.",{"vs":238,"vs_template_id":438,"summary":439},"letter-of-intent-D178","A letter of intent records that two parties intend to form a JV and captures high-level agreed terms, but it is typically non-binding. This planning guide goes substantially further — it works through every structural and operational decision needed to produce a binding agreement. The LOI gets you to the table; the planning guide gets you to a term sheet.",{"vs":132,"vs_template_id":441,"summary":442},"partnership-agreement-D197","A partnership agreement governs an ongoing general or limited partnership — an indefinite business relationship between co-owners. A joint venture is typically formed for a specific project or defined period, with each party remaining an independent company. JVs dissolve when the project ends; partnerships are designed to continue. The planning and governance requirements differ significantly as a result.",{"use_template":444,"template_plus_review":448,"custom_drafted":452},{"best_for":445,"cost":446,"time":447},"Business development leads and founders aligning internally or with a prospective partner before legal engagement","Free","4–8 hours",{"best_for":449,"cost":450,"time":451},"Domestic JVs involving meaningful IP or capital above $100K, reviewed by a business lawyer before drafting the formal agreement","$500–$2,000","1–2 weeks",{"best_for":453,"cost":454,"time":455},"Cross-border JVs, regulated industries, incorporated JV entities, or ventures involving complex IP portfolios or equity stakes","$5,000–$20,000+","4–12 weeks",[457,458],"joint-venture-vs-strategic-alliance","ip-ownership-in-collaborative-agreements",[239,246,242,460,235,461,462,463,464,465,466,467],"partnership-agreement-D12551","memorandum-of-understanding-D12548","business-proposal-D1258","strategic-planning-template-D13857","checklist-customer-due-diligence-D13916","term-sheet-D473","operating-agreement-D12798","business-plan-template-D12528",{"emit_how_to":469,"emit_defined_term":469},true,{"primary_folder":97,"secondary_folder":471,"document_type":472,"industry":473,"business_stage":474,"tags":475,"confidence":480},"partnerships-and-joint-ventures","guide","general","all-stages",[476,477,478,479],"partnership","joint-venture","business-planning","legal-framework",0.92,"\u003Ch2>What is a How To Create A Joint Venture guide?\u003C/h2>\n\u003Cp>A \u003Cstrong>How To Create A Joint Venture\u003C/strong> guide is a structured operational planning document that walks two or more businesses through every major decision required before formalizing a joint venture — from evaluating partner fit and selecting the right legal structure, to defining governance, capital contributions, IP ownership, profit sharing, and exit terms. It is not the binding legal agreement itself; it is the planning framework that aligns all parties on the key terms before lawyers draft the contract. Used before any capital is committed or entities are formed, this free Word download produces a decision-ready planning document that compresses the pre-legal alignment phase and reduces the risk of costly surprises once drafting begins.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Joint ventures collapse most often not because the underlying business opportunity was wrong, but because the partners never aligned on governance, IP ownership, or exit mechanics before forming the entity. Discovering mid-operation that two equal partners have no deadlock resolution mechanism, or that neither party documented who owns the jointly developed software, triggers disputes that cost far more to resolve than they would have cost to prevent. This planning guide forces every critical decision — structure, valuation of contributions, reserved matters, profit-sharing ratios, and buyout formulas — into the open while all parties are still motivated collaborators rather than adversaries. A completed guide also gives legal counsel a clear brief, typically reducing JV agreement drafting time and legal fees by 30–50%.\u003C/p>\n",1781185937830]