GovCon FAQs: How Should a Joint Venture Allocate Profits? - SmallGovCon

GovCon FAQs: How Should a Joint Venture Allocate Profits? - SmallGovCon

It is a fairly standard business practice to divide profits according to ownership ratio. And a joint venture made up of only small business venturers only pursuing small business set-asides can follow this business practice—or any business practice—to divide up its profits (limited only by any applicable state, local, or Tribal law). But SBA does have specific and strict requirements for allocating the profits of any joint venture (1) between a…