Also if you want a business account at a major bank, they often require your proof of business registration. Registering your business gives you an opportunity to do a search on other businesses when selecting the name for your company and officially register your official business name too. There is also a difference between registering your name and registering for tax reasons. Even if you make less your first year, if you have many purchases it allows you to recoup your GST expenditures. Your second question is about insurance and being bonded.
Insurance is about risk and there are many types from auto to professional liability.
If an automobile strikes a dog you are dog-sitting then you might need professional liability insurance. If you are going to be in other peoples homes you need to clarify if their insurance will protect you in case of injury or if you need it if you knock over an antique vase. Being bonded has benefits for you. It is perhaps a necessary marketing tool for you. It helps assure your prospects and clients that you are trustworthy and provides competitive advantage.