I'm not planning on doing freelance work full time but I have done a few sites for some small businesses and I now have small business owners asking me to do work for them.
All of my work has been for myself or people that I have close relationships with. I explained how hosting works and I had these people pay directly to their web host. I would assume that you would make this transparent to customers but I wanted to see what other did. Do you full time freelancers pay for hosting and then place pages on the host/account that you manage? Do you usually purchase the domain and leave the customers out of that as well? If the answer to any of these questions is yes, how do you deal with it in your contracts?