This may seem like a basic question, but how do most people go about transferring ownership of a web site to a client?
Basically, what I want to know is how do you go about giving the control of the assets and server stuff to a client that is going to want to use a basic hosting service (NFSN, for example)? Should I expect them to create an account and upload the design, or should I create the hosting account and take care of it for them, then have them change the password? Another possibility is to charge them a monthly fee to maintain the site.
Any input would be greatly appreciated as I'm new at this game.
You should do the setting up unless they ask to do it themselves.
Ownership is an intellectual property question, and different from that of hosting. I have heard of some studios/designers retaining full intellectual property on the sites they make, which I think is weird, and if I were a client I would never agree to that.
In my experience, most clients are incapable and uninterested in setting up the website infrastructure themselves. Typically I advise the client on how to purchase the domain and hosting, then they provide me with the login credentials so I can set up the website on their host.
As you mentioned, you may also be interested in doing all of that yourself; paying out of your pocket for the hosting and domain registration and then marking up the cost and charging the client for your webmaster services. I find that tends to be more work than I am comfortable with as clients then contact you constantly about sever downtime or email problems. It's nice to be able to refer clients to the host's support services rather than having to deal with that yourself.
The other thing I was wondering about is whether or not a prepaid hosting service would be a good recommendation for a small business that only wants to develop an online identity rather than any kind of e-commerce. I have had nothing but the best experience with NearlyFreeSpeech.net for small things like this, or should I suggest a more traditional monthly hosting plan.
Most services are pre-paid to a degree. For instance, when I set up my Servage accounts (HIGHLY recommend them by the way, they are the best on the net bar-none) they require a year or so in advance, after that it's monthly. But since the pricing is cheap it's perfectly fine to do that.
Also I have to agree with Adjustafresh. 99% of the clients I've dealt with, either myself or through agencies I freelance for, have no idea or desire to set up their websites. It's best to advise them one what hosting provider they should go with and telling them how to set it up then having them pass on username and password information. This works out for everyone because you can be assured that they have the best hosting provider for them and it'll be one you've worked with and approve which makes life easier for you as well.