A joint venture is a business arrangement in which two or more persons or entities agree to jointly pursue a specific business objective—often more limited in scope and duration than a typical business or company. A joint venture may be organized as its own corporation or limited liability company. In addition to the risks of the business venture, a person or entity considering a joint venture should understand the tax issues, liability issues, and fiduciary duty issues involved.

In Alaska, a joint venture is recognized as a collaborative business effort where two or more parties come together to achieve a specific business goal. This type of arrangement can be structured in various forms, including as a corporation or a limited liability company (LLC), depending on the needs and preferences of the parties involved. When forming a joint venture, parties must consider several legal aspects. Tax implications are crucial, as the structure of the joint venture will affect how it is taxed—whether as a pass-through entity or as a separate tax entity. Liability issues are also significant; the parties must decide how liability will be shared or limited, which can be particularly important in Alaska where businesses may face unique risks due to the state's environment and economy. Lastly, those involved in a joint venture must understand their fiduciary duties, which require them to act in the best interest of the joint venture and its objectives. It is advisable for parties to draft a clear joint venture agreement that outlines the roles, responsibilities, contributions, and expectations of each party to mitigate risks and ensure compliance with state and federal laws.