There are two different types of joint ventures: contractual joint ventures and incorporated joint ventures.
In a contractual joint venture, two businesses work together with a common goal. They then sign a contract that adheres to these details. In this arrangement, both parties operate separately and do not pool their profits or losses, despite sharing a common goal. There are no registration requirements, and each company has its own records.
An incorporated joint venture is when a group of individuals (“joint venturers”) file together for incorporation. This filing then creates a single legal entity. They do so to meet an agreed upon business objective.