When you first set up a business, you adopt a status that acts as the regulatory framework for the business. Most contractors simply use Companies House`s model articles. Often, a limited liability company can be owned by only 2 shareholders with 50:50 stakes. A shareholders` agreement defines what will happen when the relationship breaks down (“impasse”). 7. The net profits and losses of the undertaking shall be shared by the members in equal shares or shares. Net profit is the gross margin generated each year, net of management expenses, including expenses related to employees` salaries and salaries, other commissions paid and all other expenses related to the activities of the business, as well as other expenses authorized under the Income Tax Act. In the event of partnership failure in the event of bankruptcy, it is important that a strong agreement has been reached in advance to ensure that litigation and costly problems are avoided. Stephensons can help you close these deals, saving you time, and of course, in the long run, money, your partnership should end. If you have set up a limited liability company and you are earning a co-founder, you will likely give shares in the company as part of the co-founder relationship and therefore you will need a shareholders` agreement, especially before receiving an external investment. .