I'm opening a web designing company. Say I have some clients who need websites. Now I don't own a server of my own, I just know how to make websites. So I use a hosting site as my server, for example www.uk2.net provide cheap hosting. So now, for each client I get, I buy 50gb hosting space on uk2.net and assign them a domain. But I will be advertising in my website packages that each package include 50gb of hosting space. Is this legal? Since the hosting space is actually coming from a different company?

If you are serious about websites either for personal or your business, don't go to free web hosting as they are usually not reliable and you may end up losing all your hard work. Free web hosts usually put advertisements on your websites and it could be annoying.

If you like to create websites (usually you will end up more than 1 website, I got more than 100 websites in about 6 months' time), go for multiple web hosting services where you could host all your websites in one account.

I would like to suggest following webhosting , they are excellent.

Hostmonster http://www.hostmonster.com/track/ryukend...

They offer hosting of "unlimited domains" and you will get massive webspace of 300000 MB (300 GB ). They only charge $5.95/month and they offer "a free Domain Name" and installing service called "Fantastico". By using Fantastico, you could create own forum, photo gallery, shopping cart (e-commerce),your own auction site and your own blogs within few seconds. They also offer "Free Website Builder" as well.