And yes, frequent visitors (even in the daytime) does escalate that. 

And, before you run off scared, consider linking up with a local organization that helps victims of domestic abuse or veterans find suitable housing.

So far I have not found a list, suitable for those of us that are brain cell deficient, that lays out what can or can't be put into this category.

I am reasonably new to the US real estate market and thus would appreciate some expert advice w.r.t the best tax structure, liability protection and generally which structure is more suitable, S-Corp,  L.L.C, Series L.L.C, other.

I suggest you are projecting your own emotions, not suitable for a serious discussion regarding money. ;-)Why did B.C. institute a tax specifically on out of country investors?

They will be able to navigate the process and give you advice if the lot is suitable to build. 

The exemption is for protecting small multi-family homeowner's from the woes of a bad tenant and creates flexibility in finding suitable tenants, who thus, are living in close proximity to the owner.

I have occupancy of close to 90% annually, which is not uncommon here since we have year-round visitors (including many people from up North in the winter).

Quite often they are embarrassed by their situation and the prospect of less visitors and a shorter process sounds more appealing than scraping for that extra dollar and inviting the circus over.

There is far less competition for their branded keywords, and you can get low funnel visitors at a fraction of the cost.