Joint Venture

Careful planning with a Chartered Accountant is warranted. Contact Keith Anderson CA at (780) 447-5830 if you need advice. 

Click HERE for more information on Joint Ventures and Taxation.

A Joint Venture is sometimes confused with a partnership. The two structures share many traits. However, where a partnership shares resources under a continuing relationship between the partners, a joint venture is not a separate legal entity and usually entails a bringing together of resources for a specific purpose with a limited life. The joint venturers retain ownership of each party’s contributed resources. No separate legal entity is created when a joint venture is formed, the joint venturers are in fact the only legal entities involved. From an income tax perspective, income is taxed in the joint venturer's hands. Joint ventures are common where two or more business entities have separate but complementary skills or resources which are brought together in a symbiotic relationship.

Advantages

1. Easily formed

2. Low start up costs

3. Retain ownership of contributed resources

4. Share skills and resources

5. Some income tax advantages

Disadvantages

1. Limited life

2. Not a separate legal and tax entity

Legal Notice And Disclaimer

Privacy Statement