Some people shy away from the word “contracts” because a lot of time it triggers that feeling of “being sued”. A contract, by definition, is a promise or set of promises that are legally enforceable and, if violated, allow the injured party access to legal remedies. In short, its an agreement between two or more people.
Your business is how you’re going to be making your income. You’re going to want to protect your business, product/services, and yourself. Why and how to register yourself can be a long winded answer, but to summarize: registering your business will ensure personal liability protection, legal benefits, and tax benefits.