Corporate and unincorporated joint venture entities (“joint ventures”) are a common form of business enterprise. For several reasons, investors (“venturers”)1 establish joint ventures rather than undertaking business activities on their own. Venturers may use joint ventures to enter new markets, finance major projects that are beyond each venturer’s financial capabilities, or share expertise or risks. Joint ventures also allow venturers to partially exit a business or enterprise as an alternative to a complete disposition. Joint ventures can take a variety of forms, including corporations, partnerships, and LLCs.
We use the term “venturer” when referring to the members of or investors in a legal entity that meets the definition of a joint venture. Should the legal entity not meet, or it is unknown whether it meets, the definition of a joint venture, we will interchangeably use the terms “member” or “investor.”