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Joint Venture LLC Agreement Template for United States

A Joint Venture LLC Agreement is a legally binding document that establishes the terms and conditions for a limited liability company formed by multiple parties for a specific business purpose. Under United States law, this agreement combines the flexibility of a partnership with the liability protection of a corporation, governed by both federal and state-specific LLC regulations. It outlines capital contributions, profit sharing, management structure, and operational procedures.

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What is a Joint Venture LLC Agreement?

The Joint Venture LLC Agreement serves as the foundational document for businesses seeking to combine resources and expertise while maintaining limited liability protection under U.S. law. This agreement is essential when two or more parties wish to pursue a specific business opportunity together while maintaining separate corporate identities. It details crucial aspects such as ownership percentages, capital contributions, profit distribution, management rights, and exit strategies. The document must comply with both federal regulations and state-specific LLC laws, making it a comprehensive framework for joint business operations.

What sections should be included in a Joint Venture LLC Agreement?

1. Parties: Identification and details of all JV participants

2. Background: Context and purpose of the joint venture

3. Definitions: Key terms used throughout the agreement

4. Formation and Purpose: Details of LLC formation and business objectives

5. Capital Contributions: Initial and ongoing financial/asset contributions

6. Management Structure: Governance and decision-making procedures

7. Profit and Loss Allocation: Distribution of profits and handling of losses

8. Transfer Restrictions: Rules regarding ownership transfer

9. Dissolution: Process for terminating the JV

What sections are optional to include in a Joint Venture LLC Agreement?

1. International Operations: Provisions for cross-border activities when JV operates internationally

2. Intellectual Property Rights: IP ownership and licensing terms when JV involves IP assets

3. Employment Matters: Employee-related provisions when JV will have employees

What schedules should be included in a Joint Venture LLC Agreement?

1. Schedule A - Initial Capital Contributions: Detailed breakdown of each party's initial contributions

2. Schedule B - Members' Information: Detailed information about each member

3. Schedule C - Business Plan: Initial business plan and projections

4. Appendix 1 - Management Procedures: Detailed procedures for management operations

5. Appendix 2 - Valuation Methods: Agreed methods for valuing JV interests

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use

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