<------ I am in Alberta too!
I can only speak for my area, which is just north of Calgary. (Just barely north, that should tell you where I am!) $500 for B/A seems a little steep, especially if you are charging extra for full days. BUT, it really depends on what the "norm" is where you are!! And it is totally normal for B/A pricing to be dependant on whether it's just before, just after, both, whether you provide breakfast, snacks, transport, full day care, etc.
If the provider is licensed, then he/she is definitely breaking some rules having that many children under their care. The challenge in Alberta is that there are NO clear rules on UN-licensed care. We have had this debate before on this forum, as to what the regulations are. I can only tell you what I learned, when I called the government of Alberta. TECHNICALLY, I was told, there are no rules on private home daycares. Unlicensed providers do not have to follow the same rules for ratios, etc. It is the parents responsibility to determine whether a private provider is offering a safe and secure environment. However, if you feel that the children are in a dangerous situation and you can clearly define some problem areas (ie; you have seen the provider abusing the children, or you have seen them playing dangerously, or unsupervised, etc) then you can report them to the local "child services" department.
I use a business name, but only informally. I still file my taxes as an individual, and all financial info is under me, not my daycare name. Cheques are made out to me, my bank account is a personal one, not business, and so on.