Hello again
I might start by saying that I bought my properties in my personal names, so not sure if this makes a big difference.
I also know that the city has been cracking down on businesses that don't have a business license, I also own a Plumbing company in Edmonton, the city of Edmonton had set up a sting last year to catch contractors without a license, they set up a service call with several companies through out the day, our company was flagged as not having a license (ours expired the month prior), when we arrived we were ticketed and informed, once I sent in my expired business license and paid for the renewal they waived the ticket. They told me they were doing this with other trades i.e. electricians etc. really it is just a tax grab as Thomas has stated.
My property was an existing triplex (house converted to three suites), I had a small fire and the city was informed that I had a suited property. The safe housing committee came and they allowed it to remain a triplex as it was pre-existing and it was obvious it had been for a long time. I had to have an electrical company pull the permit for the extra work the city required, I also had to pull a plumbing/hvac permit as the furnace was installed by prior owners without a permit (these permits can't be done by homeowner) I had to apply for development permits etc, this was a pain as the city doesn't communicate well with the other departments. The development department at first said I couldn't have it, but the safe housing officer trumped them and allowed it, so I just had to get to the right department for approval.
Regarding being shut down, there was never a question of being shut down, the city is not trying to shut anyone down, they just want to make it safer for tenants and to be brought up to fire and safety codes, they were actually great to work with. With that being said, my place was very well kept, met most of the codes i.e. egress windows etc. I do know that the city often shuts down duplexes that have suites in the bsmt. It is often a good idea to legalize a pre-existing suite or at least ensure that most of the suite meets the fire code for ceilings and windows etc so if you do get caught you haven't much to do, and its safer for the tenants.
The city inspectors had told me the city "may" ask me to get a business licence for the property, however when I pulled the permits, etc I was never asked to (i've had it legalized for 4 years now). I've never been told to get a license, nor have I been told about penalties, this again may have been because it was a residential house converted to a triplex.
Lisa