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 West Virginia (WV), 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 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 several legal aspects. Tax issues are important as the structure of the joint venture will affect how it is taxed—whether as a pass-through entity or as a separate tax entity. Liability issues are also crucial; the parties must decide how liabilities will be shared or limited, which can be particularly important in industries with higher risk. Lastly, fiduciary duties arise in joint ventures, requiring parties to act in the venture's best interest. It's advisable for parties to draft a joint venture agreement that outlines the roles, responsibilities, contributions, and expectations of each party to mitigate risks and clarify the terms of the partnership. Consulting with an attorney to navigate these complex issues is recommended to ensure compliance with WV state statutes and federal law.