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  From what I read in your post it sounds like there are three separate issues here, all of which fall under different bylaws. 1) Barking
 2) Number of dogs
 3) Licencing
 
 Since these are three separate laws, unrelated to one another from a legal perspective, that means that where the dogs live has no bearing on who licences them. In my area (Edmonton), you are allowed to licence three dogs and six cats. That is also the maximum amount you are allowed to have in your home. It is expected that all the animals in your home are licenced. It also means that each animal could be licenced by a different person who lives at a different address, and you would still be in violation of the laws that given how many animals can live in each home.
 
 That is why boarding kennels need a business licence in order to be exempt from these bylaws. If they didn't, they would be subject to prosecution, even though all the dogs are licenced by different owners. Since they are all residing at the same address, without the business licence they would be in violation of the maximum numbers for pet ownership. Bear in mind that if you were to consider this as an option, you would need to apply for a business licence, pay business taxes, and subject yourself to whatever inspections would be necessary in order to run a legitimate business from your home. You would not be exempt from the law unless you jumped through all the necessary hoops and could prove the legitimacy of your business.
 
 I don't want to frighten you, but the truth is that many pet complaints originate and progress because of persistent complaints from neighbours. Even if the barking stops, she may still have issues with you having three more dogs than you are allowed. Please don't make the situation worse by deliberately trying to evade the law. If the truth comes out, and it you do end up going to court, this will not help your cause. Remember that from a legal standpoint, you are in the wrong, and your neighbour does have the law on her side.
 
 What I mean by that is that if the police (or whoever enforces such laws in your area) investigate and find that you are breaking the law by having five dogs, ultimately THEY will decide if the dogs are to be removed, and which dogs are to be removed from the house (and keep in mind they may take all of them and forbid you from owning dogs at all, now or in the future). In addition, THEY will decide where these dogs will live (typically, they are taken to the local Humane Society, and put up for adoption).
 
 I hate to be a downer, because I can tell you love your dogs and want what is best for them. The problem is you are knowingly breaking the law, and if 'convicted', it is your dogs who will ultimately be punished. I would hate to have that happen to you. I would strongly urge you to start looking for new homes for your dogs, or a new home for your family where you are allowed to keep five dogs.
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