KEYTLaw continues to use cutting edge technology that benefits our clients. We are now creating Operating Agreements and other contracts that use a state of the art digital signing service called “DocuSign.”
Digitally signed documents are legally binding. The United States has enacted laws that provide electronic contracts the same legal validity and enforce-ability as traditional pen-and-paper contracts. DocuSign is the trusted and secure solution for obtaining electronic signatures that fulfill key requirements of the Electronic Signatures in Global and National Commerce (E-SIGN) Act and the National Conference of Commissioners on Uniform State Laws’ Uniform Electronic Transactions Act (UETA). The world’s largest companies rely on DocuSign, and users have executed millions of contracts using DocuSign.
There is a significant movement toward signing legal documents electronically. You can sign legally binding contracts online and even from your phone. DocuSign allows LLC members to sign their LLC’s Operating Agreements faster, cheaper, and more securely than the old-fashioned method of signing paper documents.
DocuSign makes signing the Operating Agreement of a multi-member LLC a piece of cake compared to the old fashion way of signing contracts.
The Old Fashioned Method of Signing Contracts
Hopefully the LLC has at least one member who takes on the thankless task of getting all the members to sign the Operating Agreement. I’ll call that member the “Responsible Member or RM.” Unfortunately some multi-member LLCs do not have a responsible member, which means the LLC’s Operating Agreement will never be signed.
- The RM must take the ball and be in charge of getting members to sign the the Operating Agreement.
- The RM gets all other members together to sign the Operating Agreement or circulates the Operating Agreement among the members for their signature.
- The RM collects the fully signed Operating Agreement from the other members. Hopefully this happens, but sometimes it does not.
- The RM makes copies of the signed Operating Agreement and distributes a signed copy to all of the other members. Hopefully this happens, but sometimes it does not.
- The RM saves the fully signed Operating Agreement in a safe place for future reference. Hopefully this happens, but sometimes it does not.
I hope your multi-member LLC has a responsible member who accomplishes all of the tasks listed above. Unfortunately too many multi-member LLCs don’t have a responsible member or the responsible member does not complete all of the necessary steps to get the Operating Agreement fully signed and distributed.
KEYTLaw’s New Technology Digital Signature Method of Signing Contracts
- KEYTLaw emails to each member a DocuSign configured pdf version of the Operating Agreement.
- Each member digitally signs the Operating Agreement and sends the digitally signed agreement back to DocuSign. DocuSign makes it quick and easy to sign (you can even use your phone to sign) and once signed the document is automatically returned to DocuSign.
- If a member does not sign the Operating Agreement DocuSign bugs the heck out of the member until the member signs the Operating Agreement.
- When all members have signed and returned the Operating Agreement to DocuSign it automatically sends the fully signed Operating Agreement to all of the members.
Another Reason to Hire Us to Prepare Your LLC’s Operating Agreement or to Form Your Arizona LLC
The fact we use DocuSign for Operating Agreements of multi-member LLCs is another reason why you should hire us to prepare a custom Operating Agreement for your LLC or to form your LLC. If we prepare your Operating Agreement you have the option to have all members sign the Operating Agreement digitally using DocuSign. Members of multi-member LLCs (other than members of an LLC owned only by a married couple) that purchase our Silver ($597) or Gold ($997) LLC Formation Packages will be sent email messages that ask them to digitally sign their LLC’s Operating Agreement.