Your business, your partner`s business and your markets change over time. A joint venture can adapt to the new situation, but sooner or later most partnership agreements end. If your joint venture has been created for a particular project, it will end naturally when the project is completed. A Qualified Joint Venture (QJV) is a kind of federal income tax system for spouses who run a partnership business. The couple filed a less complicated joint tax return than if their business was treated as a partnership for federal tax purposes. The goals you agreed on should be transformed into a working relationship that fosters teamwork and trust. On the page of this manual, you will find out how to make your joint venture relationship work. The initial agreement should also specify what will happen to the expiry of the joint venture. For example, the joint venture agreement will explain who will contribute what to the company. The goal is to ensure that each party understands what it needs to do and that it is bound by that commitment.
The first question that the parties must ask themselves before the development of a joint enterprise agreement is: “How do we want the joint venture to be structured?” There are key features of a joint enterprise agreement and points that you need to consider and/or include to ensure that your agreement leads to success and prosperity. A joint enterprise agreement should contain the names of the signatories, the terms and purpose of the agreement, as well as any additional information on the project implemented. A joint venture agreement could also include clauses regarding the disclosure of sensitive information, termination and the duration of the business. You can benefit from the review of your own business. Be realistic about your strengths and weaknesses – think about a SWOT analysis (strengths, weaknesses, opportunities and threats) to see if both companies are right. You will almost certainly want to find a joint venture partner that complements the strengths and weaknesses of your own business. Once all parties to the joint venture have agreed on the organisational structure of the joint venture, a joint enterprise agreement will have to be drawn up to clarify the rights and obligations of the parties.