Following on from my recent post, can someone please educate me as to the difference between a syndicate, and a joint venture? I would assume a syndicate would have more members, and a JV would be more rigid and less fluid, but these are only guesses.
I checked out ASIC’s web site, which is full of legalese, and is utterlyincomprehensiblyverboselyoverstating what should be simple to understand. I also emailed them, and they stated no opinion, and sent me elsewhere!
The key difference is a “joint venture” is often the amalgamation of two or more active businesses, whereby a “syndicate” generally applies to the formation of a new entity for the purpose of raising and investing capital.
Definitions:
Joint Venture – the cooperation of two or more individuals or businesses in a specific enterprise, each agreeing to share profit, loss, and control – common when companies partner without having to merge.
Syndicate – a group of investors who act together when investing in a company or other entity.
Both are typically taxed as a partnership.
— Michael
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