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hello Im Nadia MacLeod from rpmre legal kits and we help you cut your legal costs with our online template kits a shareholder agreement is a document that outlines the relationship between people or companies that own a business together you should create a shareholder agreement even if your business is only between family members or friends before entering any shareholder agreement you should consult with an accountant they can help you prepare a business plan that protects future cash flow estimates the capital needed and predicts when the company will be profitable funding a company can be done from loans to the company from individuals or institutions banks will often need a directors guarantee to offer their lending capabilities Direct Cash investments from the shareholders should be considered as personal loans document these loans and their details so there is no further future dispute once you understand the capital needed each shareholder can decide if they are willing to st