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 Florida, a joint venture is recognized as a business arrangement where two or more parties come together to undertake a specific business project or venture. This collaboration is usually more limited in scope and duration compared to a regular business or company. Parties can organize a joint venture as a separate legal entity, such as a corporation or a limited liability company (LLC), which can offer liability protection and potential tax benefits. However, it's important for individuals or entities considering a joint venture to understand the associated risks and legal implications. These include tax liabilities, which can vary depending on the structure of the joint venture, and the potential for personal liability if the venture is not properly structured as a separate entity. Additionally, parties in a joint venture owe fiduciary duties to one another, which means they must act in the best interest of the joint venture and each other. Failure to adhere to these duties can result in legal disputes and liability. It is advisable for parties to draft a joint venture agreement that clearly outlines the roles, responsibilities, contributions, and profit-sharing arrangements of each party to minimize misunderstandings and legal issues.