depending on where you are, there are different ways of being taxed. in some cases, you get taxed less less for being a registered business (inc) vs a freekancer with a certification (LLC or w/e it called).

it also depends on how you're registering it as. i don't know a lot about it because i've always done all the work myself, so i have no need for it yet, but i do beleve there is a difference between saying $company inc and $company ltd and it would matter.

i haven't studied it much yet, so this is just reaching way back and piecing together what i've heard before.

EDIt: soreal beat me, and did a better job.