How to Structure a Joint Venture Between Two Companies (2026)
Joint ventures can be structured as: (1) a new JV company (most common — new Ltd/LLC with both parties as shareholders), (2) a contractual JV (no new entity — just a contract), or (3) a limited partnership (used in private equity JVs).
Joint ventures can be structured as: (1) a new JV company (most common — new Ltd/LLC with both parties as shareholders), (2) a contractual JV (no new entity — just a contract), or (3) a limited partnership (used in private equity JVs). Each structure has different tax, liability, and governance implications. Key documents: JV agreement, shareholders' agreement, operating agreement. Deadlock provisions are essential when a 50/50 structure is used.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.