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 Delaware, a joint venture is a collaborative business arrangement where two or more parties come together to pursue a specific business goal. This type of partnership 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. Delaware's flexible business laws allow for the creation of joint ventures with relative ease. Parties entering a joint venture should be aware of the tax implications, which can vary based on the structure chosen. For instance, an LLC may offer pass-through taxation, while a corporation could be subject to corporate taxes. Liability is another important consideration; an LLC structure may provide members with limited liability protection, whereas in a general partnership, each partner could be personally liable for the debts of the venture. Additionally, parties in a joint venture have fiduciary duties to one another, which means they are legally obligated to act in the venture's best interest. It is advisable for parties to draft a joint venture agreement that clearly outlines each party's contribution, share of profits and losses, management roles, and procedures for dispute resolution. Consulting with an attorney to navigate these complex issues is recommended to ensure that the joint venture is established in compliance with Delaware law and that the interests of all parties are adequately protected.