Joint venture

Limited business relationship between individuals or entities, usually treated as a partnership for tax purposes and subject to the partnership law of the state under whose laws it was formed. Unlike partnerships, joint ventures are usually limited to a single transaction and are for a limited duration. The joint venture allows the participants to maintain their separate identities as individuals or business entities while still getting the benefit of working together on a single enterprise. This occurs without risk to any participant that the activities of one of the joint venturers could result in liability to an uninvolved venturer, which makes it a better choice for a risk-averse investor.