A registered business allows you to create a separate business banking account. You will receive a separate income TAX number as well, another great way to keep your personal matters outside of your business.
All funding providers will require that you have a registered business entity. Banks and credit providers largely offer two credit options, business and personal. Both avenues are tailored to the needs of the entity.
Your products and services will naturally have an identity, a product name or something that uniquely distinguishes you from everyone else in your market. Registering your business gives you a measure of identity protection. You can now put your name on your product without someone else cloning your products with your name on it. Note that to completely engage with brand name protection you need to explore trademarks and copyright protection.
Customers trust registered businesses. When you register a business, it means that you are serious about trading and you inspire confidence to your market.