My motto is "Don't bite the hand that feeds you". But lets take a detailed look.
For starters I don't need to know who you are, call yourself John Smith or Fred Bloggs, it doesn't matter to me.
Any electronic communications between you and me can be tunnelled & encrypted if you wish, it's easy to do and costs nothing, I will show you how to if you need.
My data is protected with multi-level security and not everything is stored locally, I also use secure private encrypted cloud storage.
You can pay me by cash or Bitcoin for greater anonymity if you wish.
Only what is required to provide the client with a first class service and they are soon lost if instructed. I am not required to keep any logs of website activities, nor do I wish to do so.
Obviously I would not wish to put my self at risk of prosecution, that's why I have Terms and the hosting provider has responsibilities too. But what possible information could I give to any investigating authority? A hand full of websites that I don't have access codes for, which could be pulled at the click of a mouse. 2 or 3 clients who's names, addresses & details I don't know, maybe I don't have any clients. Records of payments made to me? Oops I didn't keep any. UK & European authorities have no jurisdiction over me, I live in Turkey.