Have To Be Crazy To Start a Global Business in the USA – As a Public
by Ron Holland
by Ron Holland: Just
Another Day in the USA
I'll bet you
don't know that I may be the first person in recorded history to
move voluntarily from the warm beach and golf resort of Hilton Head
Island, South Carolina to cold and snowy Toronto, Canada. But Steve
Wynn and many other entrepreneurs forced to deal with the multitude
of regulatory agencies at the federal, state and local level would
likely agree. America’s growing number of bureaucrats – all with
their hand out to exchange fees for paperwork – can make it impossible
to compete in the global economy from the US.
for business is frightening here," he says, and that's why he's
moving half his operation to Macau. – Steve Wynn, the entrepreneur
who led the rebirth and explosive expansion of the Las Vegas Strip
in the early 1990's.
I’ve been retired
for some time from the investment business after years working as
the president of a broker/dealer licensed in 47 states. And up until
a few weeks ago, I lived just a few steps from a warm-water beach;
when not writing on financial and freedom topics, I enjoyed everything
the Hilton Head resort lifestyle had to offer. Now I’m in the process
of moving to cold Toronto, where I will walk my dog in zero-degree
weather instead of on a sunny beach. You might think I’m crazy to
have made the move, but read on.
Mind Rather Than Tax Savings – Although Americans who live and
work offshore do receive substantial tax exclusion if they meet
certain requirements this isn’t why I’m moving offshore. In addition,
offshore working American’s get to take a credit against US taxes
for foreign taxes paid in most major nations. This helps to offset
the big disadvantage of being an American citizen as the US is the
only major nation in the world that taxes its citizens on their
excited to pay equal or higher taxes to a new nation that never
attempted to draft me to fight in Vietnam, doesn’t harass me or
my wife when getting on a plane or crossing a border and has never
made my life miserable. Also Canada is sort of like Switzerland
as the nation isn’t exactly the terrorist magnet of the world like
the US and their economy is booming and its sovereign debt level
the Lack Of It Never Bothered Me – This move to Canada began
with a chance meeting in a plane with my friend Ian. Back in September
of last year, I was heading down the isle of a plane far from where
either of us lived, and I heard a "Hi Ron." I wasn't expecting
to meet anyone I knew on the flight, but just to my left sat Ian
and his wife – except it didn’t quite look like Ian, and I wasn’t
sure why. We exchanged the usual pleasantries, and I made my way
back to my seat. I sat there for a few minutes trying to figure
out what was different about him. Then I realized what it was …
he used to be bald on top, but now he had a new crop of natural
hair on the top of his head.
Take a look
for yourself at my 66-year-old friend and his before and after photos.
And he's only half way through the therapy!
8 months into
the 2-year therapy process, these are the impressive results:
So I’m swapping
Hilton Head for Toronto because I saw the opportunity of a lifetime
with a company that has developed a medical therapy for restoring
natural hair growth. It produces what millions of people long for
– live, growing hair. And the therapy has been demonstrated to be
effective for 85% of men and more than 92% of women based on thousands
They want to
turn the hair treatment system into a business and plan to dominate
the world market for hair restoration and hair loss prevention.
I guess I should say "we" because I’ve been named the
company’s CEO. You’ll still get my regular editorials on freedom,
liberty and free-market alternatives on LewRockwell.com, theDailyBell.com
and other free-market websites, but I couldn’t pass this opportunity
How I Lost
the Argument To Locate the Company Headquarters in the US
I’ve been to Canada many times and it does get really cold up there
and not a palm tree anywhere. I gave it my best and they countered
with CNBC’s "The
World’s Best Places to Live in 2011" showing me where Toronto
was 15th in the world.
I knew I had
them, responding "only 15th, well what American
cities rank higher than Toronto in the ratings." They responded
with "no American cities even made it in the top 15" even
though CNBC sponsored the slide presentation.
up with ease of air travel to and from the US as I know our airfares
are often less expensive than Europe and Canada and this will be
an international business. That was a mistake as many of the company
partners and associates are from outside America. They responded
with "try flying into the US without an American passport as
they often treat us like criminals." Well I had to agree with
them here as I fly in and out often and it is a different story
for those in the long lines for non-American passport holders.
continued to argue bureaucracy, tax-rates, crime, friendly law enforcement,
victimless crimes, the Patriot Act and how the American sovereign
debt, the dollar and how the nightmare of our political institutions
– except for the Ron Paul Campaign – threatens every American citizen
and business. I lost the argument so I’m now moving to Canada to
become CEO of a new start-up company with a viable solution for
people suffering from the effects of unwanted hair loss and baldness
– both males and females.
On Start-up Companies
can be like porn in a way: they can be fun and interesting, but
most of the time pretty disappointing… another analogy is a lottery
ticket." – Lorien Gabel, chief of start-up Pingg
would agree with Gabel (quoted above). Although investing in start-ups
can buy you a lot of excitement, most of them end up doing absolutely
nothing that's profitable. They're like buying a lottery ticket.
Having won over $4,500 many years ago playing quarter slots while
waiting for my wife to dress for dinner, I know you can win, but
it doesn't happen often.
But on the
other hand, as Apple, Amazon and other winners have shown, if you
have a unique product or service that people really want and are
way ahead of the competition, your odds of winning big go way up,
especially if you get in early. I believe our hair therapy system
is certainly unique, I've seen it work, and it totally out-delivers
against the competition.
hair restoration market is huge. Although most men and women want
a full head of hair, by age 35, two-thirds of American men suffer
some degree of hair loss, and by age 50 nearly 85% have thinning
hair (male pattern baldness). Half of all women suffer from thinning
hair, usually beginning after age 50.
How many readers
wish they had invested early in a ground-floor opportunity with
Apple? Or consider Peter Thiel, the co-founder of PayPal, and his
$500,000 angel investment in Mark Zuckerberg’s Facebook in 2005.
It is now worth better than $2 billion.
A 2012 Opportunity
– I see a real cure for baldness as potentially a very profitable
opportunity for early investors like myself. Of course there are
risks. Delay in regulatory approval is the first one I think of.
But the biggest one is something you can't measure – the unforeseeable.
That's why I took the CEO job as I I want to be in a position to
deal with any problems that might get in the way.
I wish I had
bought gold at $400 an ounce or silver at $5.00 or bought Apple
in the early years. Life is full of profitable trades if one has
the foresight, opportunity and ability to act. How about oil futures
at $15 a barrel, or if I had seen where the Internet or cell phones
were headed? Still, timing and control are everything in investing,
and as part of top management here I can use my energy and experience
to make things happen. And as for timing, this is about as early
as an accredited investor can get involved.
United States will lose all the way around with this venture, at
least for now. No American will be able to access the treatment
in the US before we receive FDA approval, which will probably
take years unless they travel outside the country. This delayed
business in America will result in lost tax revenue for a federal
government that is desperate for revenue.
hair-loss suffers will wish to seek immediate treatment rather than
waiting on regulatory approval in their home countries. Fortunately,
some countries, including popular international travel destinations,
have positioned themselves as centers for innovation by avoiding
So we are planning
to open our first clinic in Panama by May of this year, to be followed
by Mexico, Grand Cayman and the Bahamas. Then we will replicate
the model in other regional markets around the world until regulatory
approval is received in the U.S., Canada and Europe.
As for our
corporate structure, well there is some irony in the whole thing.
See it turns out that America is still a great place to incorporate
a PRIVATE company, as long as you have a team of quality international
tax advisors with truly international experience. There are plenty
of legally compliant tax treaties that can dramatically reduce their
corporate tax burden for any company with the wherewithal – financially
and otherwise – to avail itself of those benefits.
But back to
the central point of I am trying to make here … the fact is that
as an American company you can build a large company without crossing
the regulatory lines that bring you into the public company sphere.
This makes America still a favorable place to be for people seeking
to build value and who need to bring in an expanding base of value-added
financial partners (investors) to help make the vision a reality.
have convinced me that the great American Dream experienced and
praised by our fathers and grandfathers is still alive today. Simply
put, it is OK to build around an American private equity base, but
you have to go outside America to really maximize the opportunity
from an after-tax perspective. It is somewhat complicated, as anyone
who fills taxes with the IRS surely knows, but suffice it to say
that when you are dealing with Intellectual Property (IP) that has
in no way ever been developed in the US, it is imperative not to
bring the IP into the US if you wish to retain offshore tax status.
And since we
believe the market for the millions of people that will embrace
a REAL solution to their hair loss problem is extremely profitable,
it makes sense to maintain the incorporation only in the US and
all other operations outside – other than US domestic-based operating
clinics once the FDA approves the core drug, assuming they do approve
I believe a cure for baldness combined with our tax-advantageously-designed
business plan positions our little company to be one of the greatest
businesses opportunities of my lifetime. And I, along with a quality
team of self-starters are prepared to make the journey a long, enjoyable
and fruitful experience for all.
If you are
losing hair and want to learn more or an accredited investor wanting
to know more, feel free to contact me for more information at the
e-mail in my bio below.
Until my next
editorial, I’ll probably be freezing but feeling free and prosperous
in Canada. And by the way, vote for Ron Paul as if he becomes president
this just might be my ticket home. In the meantime, I’m going to
find out just what a cure for hair loss might be worth.
Holland [send him mail]
a contributor to the
Mountain Vision Newsletter
and Chairman of the Advisory Board of the Foundation for the Advancement
of Free-Market Thinking (FAFMT)
in Vaduz, Liechtenstein.
© 2012 Ron
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