Where two or more friends, family members, or other individuals come together to form a closely-held business entity, to start a new business or some other purpose, the parties should execute a binding legal agreement amongst themselves and the company to address a variety of issues relating to the ownership and control of the company. The agreement should be discussed and executed when commencing the business relationship, because many individuals tend to overlook or downplay the real possibility of potential conflicts and problems that may arise in the future. Also, due to their low number, shareholders in closely-held business arrangements often assume management and direction of the company an agreement will make known who controls and manages the business.