A good way to determine if a place is suitable for planting a garden is to see what is already growing there. A garden is nothing more then the results of encouraging what you want to grow and removing what you do not want to grow. Some plants like to have a deep root zone.
For those kinds of plants simply dig down deeper when you turn your soil. To answer your question... no you do not need to level the hill.
If the soil is fertile, then you do not really have to do anything other than to make sure that the plants are fully rooted to prevent them from dislodging in a heavy rain.
You could make terraces or little flat steps up the hillside. This would ensure that you don't lose all the nutrients out of the top-soil due to runoff. You might find that the soil at the top of the slope is a bit thin and infertile.
Also have you determined what vegetables your planting. So in saying that building a small retaining wall will be good. Remember to dig few trenches to allow the water to run evenly down and thru the entire garden.
Plus making a nice wall is better for your walket and will give the area a compliment. Hope this helps.......have fun!
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