You can either have your own domain name or set up your site on someone else’s domain.
Lets look at the pros and cons of both:
1. As your business grows, it will help you in establishing your own unique identity
2. You can use it to promote your online business
3. You can sell it at a higher cost if you decide to wind up your business later.
Your extra costs will be:
1. Registering your domain will cost about $12/year. A small price to pay.