A joint venture (JVs) is a kind of temporary partnership between to corporations to execute a particular business project and share the costs and benefits of only that project. Joint ventures have taxation advantages over other business unions like partnerships or even fully-fledged mergers and the members of the JV each retain ownership of their property.
JVs are contractual agreements between two or more companies usually enter JVs because they require a potential partner to help extend a project's reach. Sole proprietors are taxed on their JV profit as regular business income and can claim as much Capital Cost Allowance (CCA) as they choose. Unlike partnerships, JVs don't have to file information returns.