Should You Form a New LLC for a Joint Venture? Legal Risks, Liability, and Structuring Considerations

Should two companies form a new LLC before launching a joint venture? While many businesses prefer the simplicity of operating through a contractual arrangement, doing so can create significant legal, tax, liability, and intellectual property risks if not properly structured. This article explores the advantages and disadvantages of operating a joint venture without a separate entity and outlines practical strategies for reducing risk while preserving flexibility.