Joint venture arrangements can be complex. There will almost always be a significant element of risk when teaming together with another individual or business for commercial purposes. If risk is not managed appropriately from the outset participants can fall into conflict. This can damage not only the prospects of the joint venture but their individual businesses too. Engaging a lawyer to advise and draft the contract and seeking independent legal and financial advice for each participant before establishing a joint venture is the best way to manage your risk.

In particular a lawyer can:

• help you to decide whether a joint venture is the best legal structure for your particular business enterprise;
• provide comparisons between a joint venture and other structures to highlight the advantages and disadvantages of each;
• advise you particularly on the differences between a joint venture and a partnership and the different rights and obligations of each structure;
• guide you through the compliance, regulatory and licensing regime that is likely to apply to your joint venture;
• assist with the drafting of a joint venture agreement;
• draw your attention to related legal areas such as trade practices and competition law;
• negotiate your share of the benefits flowing from the joint venture;
• represent you if legal action is brought against you, your business or your joint venture;
• advise you about your obligations as a joint venture participant including any fiduciary duties;
• take your personal estate and personal property into account and advise on how to protect them against any business claims; and
• recommend ways to minimise your tax, taking into consideration your other personal and business finances.

The earlier you engage a lawyer the more risks you are likely to avoid. A lawyer will be able to foresee many of the obvious risks immediately and can reduce the amount of time and money that might otherwise be spent mitigating the effects of problems when they arise.