Treated as a partnership for tax purposes – fiscal transparency means that each JV party will be taxed directly on its share of the profits and losses of the venture.Limited liability partnership Key features Potentially difficult to raise external loan finance as not a legal entity and does not own assets – it cannot grant a floating charge as security for financing.ģ.Risk of creating a partnership, giving rise to unlimited joint and several liability where each of the JV parties is liable for all losses of the venture.Lacks a separate legal identity – can suffer from a lack of clear structure and identity which may affect both internal operation and dealings with third parties.Each JV party will be taxed directly on its share of the profits and losses of the venture.JV party is not normally liable for the debts of the other JV party but they may share liability on specific contracts with third parties.JV parties retain ownership of their own assets. Useful for strategic alliances or short term, single-goal ventures.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |