I'm not sure about the first part of your question, but in my experience free hosting sites usually display a huge banner advertisement on your home page so are unsuitable for a business. I only pay £30 every two years to have my site hosted, and I'm sure others are even cheaper.
By the way once you've chosen your domain name e.g. xxxxx.co.uk, have a look and see what's on xxxx.com. Xxxxx.net etc...before you commit yourself. I came up with a great name for my family history site, which was available as .co.uk only to find someone was already using the samename.com for a soft porn site.