HARTFORD Doing Business in Connecticut CityPlace I,185 Asylum Street Hartford, CT 06103 860.240.6000 NEW HAVEN One Century Tower 265 Church Street New Haven, CT 06510 Prepared by 203.772.7700 Murtha Cullina LLP STAMFORD 177 Broad Street July 2016 Stamford, CT 06901 203.653.5400 BOSTON 99 High Street Boston, MA 02110 617.457.4000 WOBURN 600 Unicorn Park Drive Woburn, MA 01801 781.933.5505 WHITE PLAINS 10 Bank Street, Suite 650 White Plains, NY 10606 914.682.2053 Barry J. Waters [email protected] | 203.772.7719 BOSTON | HARTFORD | NEW HAVEN | STAMFORD | WHITE PLAINS | WOBURN MURTHALAW.COM LEX MUNDI A LEGAL & BUSINESS GUIDE FOR DOING BUSINESS IN CONNECTICUT Prepared by: Marcel J. Bernier Jennifer A. Corvo Jennifer M. DelMonico Anthony P. Gangemi Scott M. Gerard Robert V. Giunta, Jr. Kenneth L. Levine David A. Menard Alfred E. Smith, Jr. Mark R. Sussman Keith S. Varian Barry J. Waters Edward B. Whittemore MURTHA CULLINA LLP Hartford, New Haven, and Stamford, Connecticut July 2016 The information contained in this Guide is for informational purposes only. The information in this Guide is not to be considered as legal advice or as a substitute for legal advice, and it is not intended to create, nor does it create, an attorney-client relationship. No responsibility will be accepted by the authors or publishers of this Guide for any inaccuracy, omission or statement contained herein which might prove to be misleading. Readers of this Guide should seek independent professional advice from an attorney authorized to practice in Connecticut before proceeding to conduct business in Connecticut. Copyright © 2016 Murtha Cullina LLP (All rights reserved) TABLE OF CONTENTS I. INTRODUCTION .................................................................................................. 1 A. Introductory Note ..................................................................................... 1 B. Geographic Description .......................................................................... 1 C. Investment Climate .................................................................................. 1 D. Government and Politics. ........................................................................ 3 II. BUSINESS ENTITIES .......................................................................................... 5 A. Corporations ............................................................................................ 5 B. Connecticut Entity Transactions Act ................................................... 10 C. Partnerships ........................................................................................... 11 1. General Partnerships .................................................................. 11 2. Limited Liability Partnerships .................................................... 13 3. Limited Partnerships .................................................................. 14 D. Limited Liability Companies ................................................................. 18 E. Sole Proprietorship................................................................................ 22 F. Joint Venture .......................................................................................... 22 G. Non-Profit Corporations and Cooperatives ......................................... 22 H. Benefit Corporations. ............................................................................ 24 I. Alternative Methods of Doing Business in Connecticut .................... 25 1. Sales Representatives ................................................................ 25 2. Distributorships .......................................................................... 26 3. Licensing ..................................................................................... 26 4. Franchises ................................................................................... 26 J. Connecticut Uniform Securities Act..................................................... 27 1. General ......................................................................................... 27 2. Offer and Sale of Securities ....................................................... 27 3. Registration of Broker-Dealers, Investment Advisers and Agents .......................................................................................... 27 4. Regulation of Business Opportunity Investments ................... 28 i 5. Anti-fraud Provisions .................................................................. 28 6. Administration ............................................................................. 28 III. TRADE REGULATION ...................................................................................... 29 A. State Considerations ............................................................................. 29 1. Warranties ................................................................................... 29 2. Consumer Protection .................................................................. 29 3. Regulation of Franchises ........................................................... 30 4. State Antitrust Law ..................................................................... 31 IV. TAXATION ......................................................................................................... 32 A. State Taxation ........................................................................................ 32 1. Personal Income Tax .................................................................. 32 2. Corporation Business Tax ......................................................... 35 3. Property Tax ................................................................................ 38 4. Sales and Use Taxes ................................................................... 38 5. The Business Entity Tax ............................................................. 39 V. LABOR AND EMPLOYMENT LAWS ................................................................ 40 A. Discrimination ........................................................................................ 40 B. Leaves of Absence. ............................................................................... 42 C. Access to Records................................................................................. 45 D. Drug Testing. .......................................................................................... 46 E. Medical Marijuana. ................................................................................. 48 F. Workers’ Compensation ........................................................................ 49 G. Wage and Hour ...................................................................................... 49 H. Employment Applications/Inquiries About Criminal Records ........... 50 I. Other ...................................................................................................... 50 VI. ENVIRONMENTAL LAW ................................................................................... 54 A. Federal Considerations ......................................................................... 54 B. State Considerations ............................................................................. 54 ii VII. INTELLECTUAL PROPERTY ............................................................................ 59 A. IP Strategy and Management Counseling ........................................... 59 B. Patent Prosecution ................................................................................ 59 C. Patent Strategies and Opinions ............................................................ 60 D. Trademark, Copyright, and Advertising ............................................... 60 E. IP Transactions (Licensing/Purchase/Sale/Transfer) ......................... 60 F. Patent, Trademark, Copyright, and Trade Secret Litigation ............... 61 G. Patent Post Grant Proceedings ............................................................ 62 H. State Considerations ............................................................................. 62 1. Trademarks and Service Marks ................................................. 62 2. Registration Procedure .............................................................. 63 3. Effects of Registration ................................................................ 63 4. Assignment.................................................................................. 64 5. Abandonment .............................................................................. 64 6. Common Law Rights .................................................................. 64 7. Collective and Certification Marks ............................................. 64 8. Trade Names................................................................................ 64 9. Trade Secrets .............................................................................. 64 10. Injunctive Relief ........................................................................... 65 11. Damages ...................................................................................... 65 12. Protection of Trade Secrets During Court Proceedings .......... 65 13. Misappropriation of Trade Secrets as Unfair Competition ...... 65 VIII. DISPUTE RESOLUTION ................................................................................... 66 A. Federal Court System ............................................................................ 66 1. Bankruptcy Cases ......................................................................