ok... i am telling you this from experience...
i have been a tuition teacher since my sec sch days, and i have
opened classes in my living room before. what i know is, you need
to report this as income with the IRS, as well as register under
MOE.
reason being, you need to pay income tax.
just rmb that if your advertising can reach students, it can
reach the authorities. i have never reported income or any of that
rubbish, neither am i registered because i keep under the radar
=)
the law only exists so far, but being in a public area (cyber
cafe) i think its better for you to report it.