B&B
Angelie asks what kind of business licenses are needed to open a Bed & Breakfast here in Japan. "I went to the local city office and walked away with tons of information on opening a ryokan . . . which is not what I had in mind at all."
She says that with all the laws surrounding that type of facility, she would have to build a place twice as large as initially planned. "Also, do I need to make any special changes to the layout of my home if I provide home-stays for students from abroad instead of operating a B&B?"
The nearest thing to a B&B in Japan is the "minshuku." Since there is no national Minshuku Association as such, Angelie is best advised to go back to her local City Office (which sounds helpful if not very laterally-inclined) and ask how to contact her local Minshiku Association, if such a thing exists. But basically most forms of accommodation come under the jurisdiction of the Ryokan Association, so you may find yourself back where you started.