Joint ventures can be good for everyone involved. Potential benefits include the possibility of greater growth, a larger pool of resources, increased technical capacity, and access to new markets and distribution channels that would otherwise be impossible. If you have any questions about starting a joint venture, the costs, pros and cons, or anything related to it, call me at 512.888.9860. I help clients around the world, including Texas and Delaware, the center of U.S. corporate law. I have experience with international joint ventures and joint ventures of all sizes and in various industries, including technology, oil and energy, manufacturing, financial services and others. Technology companies, for example, are particularly smart at forging joint ventures. You may have read about a technology company that holds a patent for an innovative product and is looking for a joint venture with another company that has the production know-how to bring that new product to market. Sometimes the parties to joint ventures explicitly say that they do not owe themselves these kinds of obligations. You should always work together in good faith, and if you know anything about me, you know that I believe in the power of great relationships.
Joint ventures with commercial companies are permitted as well as imports of used equipment and machinery. This does not mean that starting the joint venture has to be expensive because it is not. But it all depends on your goals and the overall structure of your joint venture. I encourage you not to take shortcuts when it comes to talking and documenting your JV relationship.