This is very important question that will arise once you have idea implementation done and you are generating some revenue, which gives you the hope that you can get better.
The next process is registration of your business the options available to you are proprietorship company, one person company, partnership company, or Pvt ltd company.
Every process registration comes with clarity on type of business you are doing and the legality attached to it. To explain in detail
Proprietorship is where you are the boss whole and sole and you are liable for everything in the company. This type of registration is good for business, which are started by one-man show for both investment and running the business. This type of legality will not get any funding and even if you raise funds you will be responsible for the repayment.
One person company: is where in its Pvt ltd and you still hold 100% ownership of the shares. So here your company has pan card and you get your Digital signature. Here you need to have to follow the taxation part you need to file returns on both your behalf and your company returns also.
Private Limited: Where you need minimum 2 people as directors and where in you have to follow complete legalities and maintain all the transactions and take care of every aspect. These type of legal companies are the ones which gets funding or loans from banks or venture capital firms.
Always advisable is to have private limited company once you have completed the idea viability.