WordPress MU

So I had an idea to sell blog space and free managed blogs to some of my work associates for a small fee (Around $10), but I would be using WordPress MU to setup the blogs on my web hosting.

In essence I would be selling my time and hosting space rather than selling WordPress accounts (which would be very illegal).

Anyway, I just wanted to make sure this was allowed before I do anything.

Why would selling Wordpress accounts be illegal?

Because it's a free script under some type of free license I presume.

It wouldn't be illegal. It's GPL, you can sell wpmu accounts for as much as you want.