Many times, individuals start a new business without documenting who owns what. Later a disagreement arises and the parties are in a gray area over who owns the company assets. Under Arizona law, a joint venture is formed when two or more parties agree to pursue a particular enterprise in the hope of sharing a profit.
There are 5 required characteristics to form a joint venture including:
- (1) An agreement
- (2) A common purpose
- (3) A community of interest
- (4) An equal right of control
- (5) Participation in profits and losses
Whether the requirements exist is determined by the facts of each situation but it is possible that a joint venture may exist where it was not intended.
Before you get to far down the road, contact Buntrock Law Group to help you create a proper legal entity with an exit strategy and buy sell agreement.