im kinda wondering this also it would be nice to get some feedback on what would be a good host aswell
I think the uptime & reliability of the website will depend on the server's location but I am pretty sure you can be held liable for operating it while in the USA, where it is illegal
you'd have to register an offshore company and do it through that. Even then you wouldn't be 100% safe from prosecution.
and you would have to go offshore to do any development or downloading. And good luck finding a host...would you want to spend all that money to get your own server.
My guess is that if you have to post that kind of question on a public forum like this...it's not something you should be getting yourself into.
Your (the person doing the work) location is what is important. If you operate a site (even through an offshore company) from the USA that they USA doesn't allow then you can expect to face the consequences at some point down the line. The only difference is how long it takes, or if, the authorities catch up with you. Not worth the time or potential headaches, work on something that you can be proud of instead.
Use 'offshore hosting' shows a lot of diffrent countries that allow this service. That should be legal. It will be very difficult to prove you are connected to it.