If you have found your Ohio business stagnating, you may discover chances to branch out by forming a joint venture with another businesses. A joint venture allows two companies to work together on new projects, often combining their resources, subject matter areas and audiences to create mutually beneficial new opportunities. At Baker, Dublikar, Beck, Wiley & Mathews, we understand that navigating the state-specific requirements for joint venture formation may be extremely complex.
The Ohio Department of Administrative Services provides a helpful guide on how to structure a joint venture, as well as the benefits under their MBE and Edge programs. One owner must meet a requirement for MBE and EDGE certification while possessing at least 51 percent ownership over the joint venture. The state government requires submission of a joint venture agreement by all parties involved.
When two partner businesses form a joint venture, they are both equally and separately legally liable for the business and all partnership obligations for as long as they continue to co-own the business. This means that should any case occur against the business, both owners would be held accountable to an equal standard in a court of law, whether the “owner” in this case is an individual or a business. Determinations of personal liability in the case of a business-owned interest in a joint venture may be determined by the type of business incorporated.
Launching a joint venture can be a wonderful opportunity for both you and your business partners, opening numerous new avenues to reach untapped markets. For more information on the subject of joint ventures, check out our blog and website.