It depends on your local regulations etc... I can only speak about what happens in Australia.
When you create your business, you can structure it in different ways, the most common ones are Sole Trader, Partnership or a Company. With a Sole Trader or Partnership, you are personally liable for the finances (and debts) that the business may incur, whereas with a Company, your personal finances and assets are protected. To register and operate as a company here is generally more expensive.
What people normally do here is register as a sole trader then as their business grows and changes, they re-structure the business into a company if they need to.
It's a bit hard to point you in the right direction as you're not in Australia but all I can say is, look at what your responsibilities are and the costs and risks involved in various different business structures and go from there.