The reasons for
remaining a sole trader, forming a partnership or a limited liability
company are in general the same whether you choose to operate on the
web or not.
However, with the
web, the trading is done more remotely, so the wary consumer will be
advised to trade with reputable "companies." So a limited
company may appear more reputable or trustworthy. This point applies
particularly to those businesses that seek to operate an ecommerce operation
that trades online.
If you are interested
in company registration, UK traders can find out more from Companies
House. You can search for names, and get some of the required documentation
online. If you want to get an inexpensive method of forming a company
then you can do it yourself. See Clickdocs
for more information.