Posted November 23, 2018
Using the same example above, the two insurance agents could simplify life by entering into a joint venture agreement that allowed for revenue and expense sharing, without the formality of the business entity structure above.
Be careful here. The IRS could impute that this is a partnership and demand a partnership tax return. Not much more will be said here since the Watson CPA Group is not a huge fan of joint ventures in this fashion, and most attorneys say it is very expensive to draft this agreement. Automobile manufacturers have the budget to enter into joint ventures.
Taxpayer’s Comprehensive Guide to LLCs and S Corps : 2019 Edition
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