Free web host; A free web space can hamper your business as there would be a bunch of advertisements of other sites on your web pages. You will loss your own identity with such jargon of ad campaign over your site. If you check the TOS of these free host providers they don’t give any guarantee of uptime or support, means you are helpless in some unseen circumstances, also think what would be the effect if the google crawler tried to visit your site and found your site facing downtime? Best to opt for a paid service, you should have command of good service & support.

Limited Hosting; As far as possible avoid those providers that don’t provide add order forms,multiple email account and other features that you would like to have.

Best to choose a providers that offer;

multiple POP Email accounts
VPS & Dedicated hosting
Secure Servers
FTP Accounts
Web usage statistics
Web space allocation
Url Redirection
Autoresponders
Site builder
24×7 live support

I would suggest to opt for a free trial those offer “Money Back Guarantee” and check their uptime, support to insure their reliability and customer care service.