What is the difference between a joint venture and a limited liability company?

A joint venture (JV) is an arrangement between two or more parties to collectively undertake a business endeavor. JVs are typically structured as a legal partnership, partnership, or corporation, and they offer the participating parties a way to share the risks and rewards associated with business activities. In the state of California, a JV is not considered legal until it is organized and registered with the Secretary of State. A limited liability company (LLC) is also a business arrangement between two or more parties, but it has a different legal structure. An LLC is a separate legal entity from its owners and provides them with limited liability protection. This means that the company’s owners are not personally liable for the debts and other liabilities of the company. LLCs are popular in California and are considered more flexible than other business structures due to their pass-through taxation and certain other advantages. The key difference between a joint venture and an LLC is that a joint venture is typically formed for a specific business purpose and not intended to continue on indefinitely. An LLC, on the other hand, is set up as an ongoing business, providing ongoing liability protection and taxation advantages to its owners and allowing them to transfer ownership interests in the company.

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What is the difference between a joint venture and a limited liability company?

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