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 Rhode Island, a joint venture is recognized as a business arrangement where parties come together to pursue a specific business goal. This collaboration can be structured in various forms, including 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 Rhode Island's state statutes and federal laws that govern such entities. Tax implications are a critical aspect, as the structure of the joint venture will determine the tax responsibilities of each party. Liability issues are also paramount, as each member of the joint venture may be liable for the actions of the entity, depending on the structure chosen. Lastly, fiduciary duties arise in joint ventures, requiring parties to act in the best interest of the joint venture. It is advisable for parties to consult with an attorney to navigate the complexities of forming a joint venture, including drafting agreements that clearly outline the roles, responsibilities, and expectations of each party to mitigate risks and ensure compliance with applicable laws.