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

A joint venture is a business arrangement between two or more people or businesses in which the parties agree to share profits, losses, and control of the business. The joint venture typically has a specific purpose and is only for the limited duration of the business. In a joint venture, all parties have an equal share in the business and are jointly and individually liable for its debts and obligations. A limited liability company (LLC) is a business structure that provides its members with limited liability protection. This means that the members are not personally liable for the debts or obligations of the business. An LLC is owned by members, not shareholders, and the profits or losses of the business are proportionally divided among them. An LLC also has the flexibility to choose a tax structure that is most beneficial to the business. In summary, the difference between a joint venture and a limited liability company is that a joint venture is an arrangement between two or more parties to collaborate on a business venture while in an LLC, members have limited liability protection. A joint venture may be formed for a specific purpose and duration, while an LLC is designed to last indefinitely. In a joint venture, all parties share profits, losses, and control while in an LLC, members may have different levels of ownership and control and profits and losses are shared proportionally.

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

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