Uhh it depends on your definition of free hosting, and on who are you offering hosting, anyway we can't be sure if your existing hosting can be divided into smaller accounts, or it has the ability to host multiple domains.
Now if you just want that, a reseller account/vps/dedicated with a control panel with that ability to create separate accounts (like whm/cpanel or plesk).
Now if you just want to give your sister/mother/friend some hosting (on domains or subdomains) you might be able to do it with your account, but you should talk with your hosting customer service regarding that, for separate hosting accounts like in the free web hosting thingy, yeah you will need something like bw-tim said ^^
Although free hosting discussion is outside of the scope of this forum, I would like to comment that you can run Multihoster (free, and open-source) on a shared hosting account. While this script is no longer maintained by its original coders, I do have the ability to send you a copy. Let me know if you are interested.
Daniel B., CEO - Bezoka.com and Ungigs.com Hosting Solutions Optimized for: WordPress Joomla OpenCart Moodle Data Centers in: Chicago (US), London (UK), Sydney (AU), Sofia (BG), Pori (FI) Email Daniel directly: ceo [at] bezoka.com
I would recommend a managed VPS or reseller account. I would also get a script like ipanel if you want forced ads on free accounts and automated account creation (if you get a VPS). And yes, check your hosts policy on free services. I know that fro example ResellerZoom doesn't allow it. GlobalWebDan is right. This topic should be at www.freewht.com
█ |||| █ |||| Top 10 Web Hosts - www.TopHostScout.com █ ||||
Because free hosting account usually doesn't require any verification to start an account, it may be subjected to abuse, ie people setting up phishing sites, warez and the lots. You will have to ensure those things do not happen or else you be spending a lot of time trying to fix things and trying not to get your account terminated.
If you do offer free hosting accounts, it be best to go for one or more unmetered dedicated servers, ensure that you limit certain functions such as bandwidth and storage limits so that any level of abuse is under control. You need to find a way to pay for the server because offering free hosting doesn't mean you get the server for free too.