Joint Venture Term category: General Business In 10 words or less: An enterprise that involves the cooperation of two more businesses/people.
Definition: When two or more individuals or corporations cooperate in a business venture and agree to split the profits and management.
StockJargon Advice: Joint venture are usually undergone by companies that want to work together but not have to merge.
Joint ventures are separate entities created by the companies (or individuals) and are taxed as partnerships. This means that the profits are "passed-through" to the original companies, and they will then pay taxes on them.
Structuring a Business A business has to have its own legal structure. This will help you decide which one to go with.