First question to be asked, are you looking to register a business that has limited liability and its own existence (legal entity)? If the answer is yes, then your only choice is to incorporate the business. A corporation may sound like a big business, but it's not necessary to be such. In Canada, most business starts with incorporation to avoid the risk of personal liability. When you incorporate, if anything wrong happens to your business, the liability goes to business itself, not to you personally. A very classical example: if somebody sue your business, and then the court order goes against your business, then the liability goes under the incorporated business, not your personal assets. On the otherhand, if your business is a unincorporated entity, the court can go after your personal property such as your house, car, bank accounts and other assets. Of course, corporation has many other benefits such as tax benefits, incorme spilt option and relatively easy to raise capital. A common benefit that a corporation enjoy is, when you spend for business purpose, including your car expenses, house rents etc. can be claimed and get corporate tax benefits as a corporation. Unlike an unincorporated business, a corporation has perpetual existence; which means the business doesn’t die at the death of its owner. A corporation’s name is more strongly protected than a non-incorporated business name. Therefore, if doing a business online where you could be present anywhere in Canada or outside of Canada, the best choice would be incorporating as a federal Corporation.