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 New Jersey, 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 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. Each structure has its own set of regulations and implications. For tax purposes, joint ventures are typically treated as partnerships unless they opt for a different tax classification. The parties involved in a joint venture share profits, losses, and control of the enterprise, and they must be aware of the potential for joint and several liabilities for the debts and obligations of the venture. Additionally, participants in a joint venture have fiduciary duties to one another, which require them to act in the best interests of the joint venture. It is important for anyone considering entering into a joint venture to consult with an attorney to understand the specific legal and tax implications, draft appropriate agreements, and ensure compliance with New Jersey state statutes and federal law.