KEYTLaw continues to use cutting edge technology that benefits our clients. In addition to giving clients online access to their documents using the highly secure Citrix ShareFile cloud storage service we are now creating contracts that use the state of the art digital signing service called “RightSignature.”
Digitally signed documents are legally binding. The United States has enacted laws that provide electronic contracts the same legal validity and enforceability as traditional pen-and-paper contracts. RightSignature 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 RightSignature, and users have executed millions of contracts using RightSignature.
There is a significant movement toward signing legal documents electronically. You can sign legally binding contracts online and even from your phone. With RightSignature you can upload contracts and have them signed in a faster, cheaper, and more secure way than paper documents.
RightSignature 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
- The member in charge of signing makes a copy of the Operating Agreement.
- The member in charge gets all other members together to sign the Operating Agreement or circulates the Operating Agreement among the members for their signature.
- The member in charge collects the fully signed Operating Agreement from the other members
- The member in charge makes copies of the document and distributes a signed copy to all of the other members.
- The member in charge saves the fully signed Operating Agreement in a safe place for future reference.
KEYTLaw’s New Technology Digital Signature Method of Signing Contracts
- KEYTLaw emails to each member a RightSignature configured pdf version of the Operating Agreement.
- Each member digitally signs the Operating Agreement and hits the reply icon to send the signed agreement back to RightSignature.
- When all members have signed and returned their Operating Agreement to RightSignature, it automatically emails every member a message with the fully signed Operating Agreement attached.
- RightSignature automatically uploads and saves the fully signed Operating Agreement to the LLC’s ShareFile folder and stores it online for future access, printing and downloading by all of the members of the LLC.
To learn more about our use of ShareFile for secure online document storage see “KEYTLaw Formed LLC’s Documents Stored in the Cloud.”
Purchasers of our Silver ($597) and Gold ($997) LLC Formation Packages receive our ShareFile cloud storage and digitally signed Operating Agreements.
Watch the 7 ways RightSignature documents can be digitally signed:
7 Ways to Sign Documents on RightSignature from RightSignature on Vimeo.
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We are proud to announce that when Richard Keyt forms a Silver or Gold LLC KEYTLaw will upload and save all of the LLC’s documents to a secure folder in the cloud hosted by the Citrix ShareFile service. We are very excited to offer this new service that has the following features:
- We send an email message to all LLC members notifying them that their LLC’s documents have been saved in the LLC’s ShareFile folder.
- When the member clicks on the link in the Welcome email the member is taken to a ShareFile page that tells the member ShareFile sent the member an email message that contains an access code. The member is asked to check his or her inbox, copy the access code in the follow up email and paste the access code on the ShareFile web page.
- When the member inserts the access code and clicks on the login button the member is taken to a secure web page on which the member enters a password, a confirmation of the password, first name and last name.
- When the member saves the information the member is taken to a ShareFile folder in which all of the LLC’s documents are saved in Adobe .pdf format.
- When logged in to the LLC’s ShareFile folder the member can: (1) download a document, (2) copy a document, (3) upload documents, and (4) share a file with another person.
ShareFile is a state of the art secure online document storage service. ShareFile’s security features include the following:
Data Protection During File Transfer
- File transfer: ShareFile employs SSL/TLS protocols to protect client authentication, authorization and file transfers.
- High-grade encryption: ShareFile secures files in transit with no less than 128-bit encryption using industry-standard encryption protocols.
- File integrity: ShareFile employs a keyed hashed message authentication code (HMAC) to authenticate and ensure the integrity of intra-system communications. ShareFile verifies file size and file hash to ensure integrity.
- Link generation: ShareFile download links are uniquely and randomly generated using strong hash-based message authentication codes. ShareFile provides technical countermeasures to protect links from guessing attacks.
Data Protection During Storage
- Datacenters: ShareFile uses SSAE 16 Type II accredited or ISO 27001 certified datacenters to host the SaaS application and metadata. All files are stored in SSAE 16 Type II (SOC1), SOC2 and ISO 27001 accredited datacenters with high availability and durability ratings.
- Encryption: ShareFile stores client files at rest using AES 256-bit encryption, a Federal Information Processing Standards (FIPS) encryption algorithm.
- Firewalls: Files are processed using systems protected by securely configured firewalls that effectively limit and control access to network segments.
- Redundant storage: Files are stored in replicate with leading Infrastructure-as-a-Service (IaaS) providers that ensure high file durability and availability.
- Backup: Files are backed up according to configurable file-retention and versioning settings
We look forward to providing members of LLCs we form and clients with state of the art online document storage.
Another service we now offer is digital signatures by RightSignature. To learn more about RightSignature and digital signatures see “KEYTLaw Clients Use RightSignature to Digitally Sign Contracts.”
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Today my son Richard C. Keyt and I finished teaching a class on Arizona LLC law to second and third year law students at Arizona Summit School of Law. It’s the fourth year I’ve taught the class and Ricky’s third year. I always get charged up by interacting with young people who will soon graduate and become lawyers in this new era of the practice of law dominated by technology.
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The following is the text of a September 30, 2015, press release issued by the Arizona Corporation Commission:
Creating an LLC in Arizona just got a lot easier. The Arizona Corporation Commission is accepting online filings for the first time. Before the online efiling became available earlier this month, someone wishing to create a limited liability company had to either come to a Commission office or mail in the paperwork.
LLC formation is one of the commission’s most important missions, Commission Chairman Susan Bitter Smith said. Shortening the amount of time it takes to file the paperwork and making sure all necessary information is submitted up front allows a business to start functioning sooner.
‘I’m proud the commission now allows for a secure and easy way to create an LLC,’ Bitter Smith said. ‘This innovation makes it faster for people to start the businesses of their dreams.’
Last year, more than 52,000 Arizona businesses were formed as LLCs, many of those coming from people who drove to a commission office to submit paperwork. Filing for an LLC online can be done here http://ecorp.azcc.gov/Entity or by going to the commission’s home page www.azcc.gov
The ability to create an LLC through online filings won praise from the business community.
‘Electronic filing of LLC documents has been long awaited by the business community and I applaud the Commission for taking this bold step. Innovation such as this will make starting businesses in Arizona easier, more efficient, and timely,’ Greater Phoenix Chamber of Commerce President and CEO Todd Sanders said. ‘We look forward to the Commission expanding electronic services even further in the future.’
Commissioner Doug Little said the Commission is sending an important message to the business community.
‘I believe this innovation by the Commission will dramatically improve and streamline the process of establishing an LLC in Arizona,’ Little said. ‘This is exactly what we need to be doing to support Governor Ducey’s initiative to let people know that Arizona is ‘open for business.’”
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The following is the text of a February 3, 2015, Arizona Corporation Commission press release:
The Arizona Corporation Commission today ordered Tucson residents Michael and Betsy Feinberg and their affiliated company, Catharon Software Corporation, to pay $4,926,559 in restitution and a $250,000 administrative penalty for defrauding investors with an unregistered investment program. The Commission found that the Feinbergs, formerly of Sedona, represented that they had created and owned a patented computer language technology named “V∆Delta”that would enable Catharon to compete with Microsoft and other computer language systems manufacturers.
While not registered to offer or sell securities in Arizona, the Feinbergs induced investors to purchase Catharon stock by repeatedly representing that Catharon would launch its technology within months of the investors’ investment, Catharon would generate $2 billion in revenue within three years and investors would receive returns of between 400 and 1,572percent. The Commission found, however, that the Feinberg never launchedCatharon’s technology.
The Commission found, and the Feinbergs admitted, they did not have any reasonable factual basis for the projected launch dates, the projected $2 billion revenue figure and investment returns, or their representations that Catharon would compete with Microsoft and similar companies. Further, the Commission found that the Feinbergs failed to disclose their use of investor monies to pay for personal living expenses, including a bird-watching trip to Mexico, as well as the transfer of more than $891,000 to their personal bank account. In settling this matter, the Feinberg admitted to the Commission’s findings for the purposes of its administrative proceeding and any other proceeding in which the Commission is a party and consented to theentryof the consent order.
For more details about this case, view the full text of the Commission’s order S-20905A-14-0061. The Commission’s final order against the named respondents will be posted online as soon as it is signed by all of the Commissioners.
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