As of 202413 CFR 125.18
Detailed Answer
Joint venture formation requires several steps:
**Timeline overview:**
- Legal formation: 2-4 weeks
- UEI assignment: 1-2 weeks
- SAM registration: 2-4 weeks
- SBA review (if applicable): 4-8 weeks
- Total: 2-6 months
**Legal formation steps:**
- Draft JV agreement
- Legal entity creation (LLC typically)
- Operating agreement
- Obtain EIN from IRS
- State registration
**Key JV agreement elements:**
- Management structure
- Profit/loss allocation
- Performance responsibilities
- Duration and termination
- Intellectual property rights
**Small business JV considerations:**
- Must meet SBA JV requirements
- Mentor-protégé JVs have specific rules
- 8(a) JVs need SBA approval
- Size status determined by JV partners
**SAM registration:**
- New entity needs fresh registration
- Cannot use partner's existing registration
- Entity validation for new business
- May have initial registration challenges
**SBA certification (if applicable):**
- 8(a) JVs need prior approval
- Review of JV agreement terms
- Population-specific requirements
- Add time for SBA review
**Planning considerations:**
- Start early before specific opportunity
- Use experienced legal counsel
- Understand partner capabilities
- Plan for relationship management
- Document everything clearly
