Google do not ban you for "when" you have started linking, but it ban you seeing "how" you have done linking. The ways of buiding links should be ethical and through whitehat methods.
These replies definitely have it right... get some content first, then start building links. You shouldn't expect to see results or rankings right away, you'll likely be in the sandbox (since it's a new site) for a couple of months, but when that period is over, you'll be in a much stronger position to get indexed quickly and ranked higher, faster because of the links you have in place. Good luck!
You should remember the following thing before starting: 1. Keywords are Key 2. Get links to your website 3. Optimize your web pages 4.Patience is a Virtue
The Solomon's Wise Words of Blog Wisdom is with great quality in the quantity of the contents that your site/blog has, the more loyal would ur readers be. Think of going slowly in the starting phases as it would be beneficial for you too to understand the intricacies of the online business. Post content regualrly on the site and submit the posts to social bookmarking and social networking web sites. When you reach atleast a count 100-150 posts, submit to blog submissions or directory submissions. Sum up some finances in order to do this. Let us hear what happened in the mean time and after hitting the firm spot.
In my experience, it is better to have your site 100% ready for readers/viewers/customers whatever the case, before you go and start building backlinks. This doesn't necessarily mean it has to be loaded with tons of content, just ready for the public. Make sure it doesn't look like it's unfinished or under construction before you start publicizing.
Once you site is completed , this is the best time to get started. try to get inbound link to internal pages in you sites as well.
Start building links on forum SIGs as soon as you can. Start submitting to directories when you don't have 'under construction' pages Try to get links to internal pages as well, I have always heard about sandbox but have never managed to 'see' it for my domains. I don't think it really exists
As quickly as possible, Google is slow as molasses (usually 2-3 months) in finding even your first link.
Build your site with sufficient content (between 10-20 pages/posts) then build your links. @ Mitch - I don't know what kind of links your going after, but I've never had to wait more than a week for Google to crawl any links that I've built! 2-3 months is insane!
You're right, it's prolly an exaggeration, but not by much. I still think it's better to start sooner rather than later, at least with main page and some keyword rich sub-pages.. even if its text-only. Google does reward seniority after all, so why not get started?
I also tend to agree with broco, that you should start building links once you have a few posts in your domain, using whitehat method. Also nobody will give you link unless you have some contents.
Can make link building from the site started and slowly making is better I thing not to get penalization.