im thinking of expanding to directly sell products and services to the end user, rather then relying soley on ad revenue. So if that matters
I wouldn't think so.
Maybe you should get a book which explains the ins and outs of this for Canada?
The term for forming a company is 'incorporation' or 'registering a company'.
A search on Amazon should bring up a bunch of choices.
In brief, the advantages of company registration can be: - limited legal liability (as long as you behave honestly) - financial advantages such as tax and the possibility of equity investment but it depends on your particular situation, as well as your local laws.
You should also consider talking to an accountant.
In my opinion, declare your website income to tax authorities same as you declare other income. Internet business will be classified under suitable categories by tax laws. I don't think websites needs to be registered. But I have no idea about internet business law.