Entrepreneurial spirit involves creativity, imagination, drive, and so much more. If you've ever seen an episode of Shark Tank, you know there is a wide range of entrepreneurs and ideas. A common downfall is that the entrepreneurs don't have the clearest of paths mapped out leading to their desired destinations.
Amidst the excitement and dreaming, a critical piece cannot be forgotten: Know what you know. Know what you don't know, and delegate the rest. With that, don't assume certain things "will be just fine." Friends with shared dreams often dream bigger together. In construction, misuse of the term "joint venture" is quite common. The misconception is that a joint venture allows two people or entities to go in together to do a particular project, which it does, but not to bypass licensing laws. Often, one person is a licensed general contractor while the other does not hold a GC license but brings other knowledge and skills to the table, so it can make sense to work together in some capacity.
Certain states like Tennessee require both parties to hold GC licenses if the project requires even one person to have a GC license. A joint venture allows the two people or entities to take on projects with a higher monetary limit. Think of it like joining monetary limits to take on higher dollar projects.
Does this mean that if your buddy is not licensed that you can't work together on a project? Not necessarily. It may just mean that you have to go about it differently and not through a joint venture.
No doubt - it sounds sexy to say you're doing a joint venture, but do you really know what that means in your particular locale?
Questions? Want to explore alternative options to a joint venture? Contact Us today!
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