Generally, if someone needs a license to do something, anything really, and they do it anyway, they will face a fine from an administrative entity. The health department, the building department, liquor control etc. If they don't comply, that entity would then either get an injunction to compel compliance or would file a criminal complaint that the prosecutor then either files charges on or doesn't. The police generally won't get involved until the person is either in contempt or fails to appear on the charges. At least that's how it works where I live.
Since I don't know what kind of business or where you're from, my best guess is, that your bf was selling illegal swamp grass from under an unlicensed troll bridge. I would recommend finding out what needs to be done to comply with the Troll Licensing Authority's rules. Unfortunately, depending on what the issue is, it may not be economically feasible to fix in the current arrangement.
And yes, re-reading my post, liquor control is probably a bad example. They carry guns and handcuffs.