Every city and county has their own rules and requirements for licensing all the various types of accommodations. Public health and safety regulations are a basis for much of these. The planning/zoning/building inspection people will help you figure this out. That is their job, and they want you to succeed. Definitely ask them all your questions, and treat them as the allies that they are to you, your community, and your business venture.
As Kitty and Creek mentioned, every country and city has its own rules. Where is your property located? This information could help local hosts share their experiences.
In Coquitlam they are requiring me to remove my stove and open the door between my house in the suite, as I have a legal suite. Once I do that they will send someone to inspect my suite and give me a license. Waiting on an appointment, in the meantime, still have stays booked...... hard to navigate in this ever changing regulations. Thank you, Cindy