Go for one of these:
Unmetered $49/month servers - FDCservers bandwidth challenge 2009 !!!! - Web Hosting Talk
and then go for:
Platinum Server Management, Inc. for management of your server. I am using them to manage my servers while I am busy with real life and don't have time to manage them myself. That and when I am too lazy to fix something its great to have someone available to help fix it quickly lol.
Since I've experienced the whole server trip / web host trip / crazy ideas, I have lots of knowledge to help you not make some mistakes I've done in the past
First things first, make sure you have AT LEAST 3-5 months reserves saved up (so that if something were to happen, you'd be able to keep the server running until you got back on your feet). I know it sounds crazy, but a crash, or a job loss could impact your server quite well and having a reserve helped me outlast lots of my competition on Digital Point.
Second, get a friend or someone you can trust to help you out if possible. If you want you can even hire support technicians at like 20-30 cents a ticket answered and like 50 cents per ticket leading to a sale or something similar.
For backups, use PSM as they're great with that area.
Legal fees, well if you're crafty, you can write a good terms of service / Acceptable Usage Policy just by looking at like 30 other different companies and making a consensus of what you think should be the rules in your own wording.
Advertising, once everything is in place, just forget adsense as it doesn't help much of anything you advertise is thrown away. Advertise on Web Hosting Talk Web Hosting Talk - The largest, most influential web hosting community on the Internet here on NB, Free Web Space Free webhosting - Freewebspace.net and Digital Point if you want (not recommended as much due to problems in the past I've faced over there with people) forums dot digitalpoint dot com (censored cause DP doesn't deserve a backlink from me )