How to go about clients' hosting needs

Hello guys. I have a quick question for anyone who works with the professional side of the web.

With my recent job I just got, I’ve made a couple sites for clients that have sold. My problem now is I don’t know the best way to go about hosting thier sites. So what do you do?

The ways that I have thought of are this:

  1. Buy domain name / buy hositng package / edit DNS and wait 3 days / upload site and be ready to go.

  2. Upgrade our business’ server to a professional package with like 5000MB and unlimited web forwarding, then just forward the bought domain name to mybusiness.com/clientsdomainname

I just want to get a feel for what you guys do. Thanks.