I'm developing a product that I eventually plan to sell. I am still VERY deep in the prototyping proof-of-concept phase.
I am interested in setting up a sole proprietorship for tax purposes. While my expenses haven't gotten bad yet, they are bound to in the future.
I would not be making any income during this time, as once I plan to sell I'll set up an LLC.
Is doing this...allowed? Am I thinking about this wrong?