Joint venture strategy is playing a vital role in this regard as it is not considered a legal entity. Instead individuals or corporations enter into contracts and make profits and losses and pay taxes only on their profits. In joint venture the parties are not jointly liable for the losses of the business while in partnership each partner is jointly liable for the debts of the partnership. Joint venture is similar to a partnership, so the company will prepare the joint venture agreement which will exclude the joint venture from being treated as a partnership agreement. Because if they are treated as a partnership, they may be subject to taxes and other unexpected liabilities. To avoid the joint venture being treated as a partnership, the joint venture agreement will place control of the company's day-to-day operations in the hands of an independent operator, appointed separately by each of the participants. The joint venture agreement also contains an express provision that liability is individual and not joint. It also ensures that assets are held separately, as tenants in common. One of the key indicators of a partnership is profit sharing, so the joint venture contractual agreement will ensure that the agreements are structured to avoid