Where in Ontario are you located because ZONING bylaws are determined by the local government so could be different for someone in Toronto than Ottawa and even within those two cities some 'residential areas' are zoned differently as well so someone in downtown TO might not be able to do something in their residential unit that someone on the outskirts closer to Mississauga might be .... so you would really need to check with your local zoning offices to find out what your address/property is zoned at, if you can operate a home based business out of a residential property or if you need to be zoned commercial and so forth in order to operate your business.

Some areas have rules like absolutely NO home based business and others define it by no more than 10% of your residential home can be used for 'home business' or no more than 25% ... but again the intent of that % is not including 'shared space' like a home childcare might use but dedicated space for business only like a hairdresser setting up a studio, a chiropractor setting up a home office, a lawyer or whatever creating a 'business office' in their home that is only ever used for that purpose.

So my property is zoned 'residential' and as long as no more than 25% of my home is dedicated to solely daycare I am allowed to have a home based business and therefore I pay normal property tax like all my neighbors as a result because I am not operating a commercial daycare and I do not have a 'dedicated' space so am able to use 100% of my SHARED SPACE cause my kitchen, bathrooms, bedrooms and even the basement is 'shared' after hours and weekends as residential space and do not count as 'business only space' .... so basically unless you have applied to the Ministry of Education to have your home 'licensed as a day nursery that can take more than 5 children' you are not a COMMERCIAL daycare just a little ole home based daycare and as long as your area is zoned to operate a home based business you should be fine