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 South Carolina, a joint venture is recognized as a business arrangement where two or more parties come together to undertake a specific business project or 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 of the venture and the preferences of the parties involved. When forming a joint venture, parties must consider various legal aspects such as the division of profits and losses, management responsibilities, and the duration of the venture. Tax implications are also a critical consideration, as the structure of the joint venture will affect how it is taxed at both the state and federal levels. Liability issues are paramount, as each party in a joint venture may be liable for the debts and obligations of the venture, depending on the structure chosen and the agreements in place. Lastly, parties to a joint venture have fiduciary duties to one another, which require them to act in the best interests of the joint venture. It is advisable for parties considering a joint venture to consult with an attorney to ensure that their rights are protected and that the joint venture is structured in a manner that aligns with their business objectives and legal requirements.