I want to make one thing clear, I pay a LOT of Federal Income tax, and CA State income tax. When I started making money I hired someone who is both a tax attorney, and CPA and asked if I should incorporate. Without going into a lot of boring tax talk his short answer was no. One of the benefits of incorporating is individual protection from being sued. He thought the chances of someone suing a website owner were very remote, and the corp would not protect me if say soemone broke their neck in my pool since that isn’t for my business.
Now when you ask about registering as a business, my understanding is that all this means is that you pay another “tax” to your city or country, and they give you a little certificate (much like the Wizard of Oz) that says you have a business. I don’t see any benefit or protection to having that piece of paper but maybe someone can point out my error. My place of business is not here in my home city or state, it is out on a server somewhere.