The average person may not realize this, but the most notable joint venture in existence today is the National Football League. It figuratively owns every Sunday in the fall of each year. It is an association of 32 clubs agreeing to compete with each other, i.e. engage in athletic entertainment. Each venturer is its own business entity; the league generates its own revenue stream (mostly TV rights) and shares these profits with its members equally.
A joint venture is a type of partnership whereby the two or more parties are cooperating together to achieve a single goal or purpose. In effect, the partnership is limited in nature but is not defined as a limited partnership. A great example of a joint venture is the NFL.
There is a tremendous amount of information to convey to fully understand partnership agreements. This is the first in a series of articles related to partnership agreements. Throughout this series I will explain the various sections and issues a small business owner faces in creating a sound and fair agreement with a single or multiple partners.