A joint venture is a business arrangement in which two or more persons or entities agree to jointly pursue a specific business objective—often more limited in scope and duration than a typical business or company. A joint venture may be organized as its own corporation or limited liability company. In addition to the risks of the business venture, a person or entity considering a joint venture should understand the tax issues, liability issues, and fiduciary duty issues involved.

In Pennsylvania, a joint venture is a collaborative business arrangement where two or more parties come together to pursue a specific business goal. This type of partnership can be structured as a separate legal entity, such as a corporation or a limited liability company (LLC), which is often done to limit personal liability and take advantage of certain tax benefits. Each party in a joint venture shares in the profits, losses, and control of the enterprise. It's important for parties considering a joint venture to be aware of the potential risks, including shared liability for the debts and obligations of the venture. Additionally, they should understand the tax implications, as joint ventures can be taxed differently depending on their structure. Finally, parties to a joint venture have fiduciary duties to one another, which means they are legally obligated to act in the best interest of the joint venture and each other. Consulting with an attorney to draft a joint venture agreement is advisable to clearly outline the terms of the partnership, the distribution of profits and losses, management responsibilities, and the duties of each party.