A joint venture is a contractual relationship in the nature of an informal partnership wherein two or more persons conduct some business enterprise, agreeing to share jointly, or in proportion to capital contributed, in profits and losses. A prime example we see often is a venture for the development of land. In this example, one venturer may own real property and may agree to allow a second venturer to build improvements (an office building, for instance) on the real property and that the venture will sell the real property with the improvements and share in the profits at an agreed-upon rate.
A joint venture in Nevada is recognized as a type of general partnership and therefore all members of a joint venture are jointly and severally liable to third persons for wrongful acts committed in furtherance of the joint enterprise. In other words, each of the venturers is liable for 100% of the damage from any act of the venture or any of its venturers, including negligence. NRS 87.150. Because of this unlimited personal liability, a joint venture is a disfavored form or business entity. The parties are much better off forming a corporation or limited liability company in order to shield oneself from personal liability for the acts of the company or its owners.