My question involves business law in the state of: California


My I am looking into buying my friend's house where she is running an RFCE (Residential Facility Care for Elderly) business. Our agreement is to buy her house for $850K and for an additional $40K, she will hand over her business to me but I will be running it under her business license while I am working to get my own license. We thought that we would put it on paper that she will hire me as her administrator to be able to run the business with little supervision from her. I wanted to make sure we are not breaking any law doing this and hoping that someone here can clear up some of our questions:

1. What does my friend need to do with her business license after I purchase her home? Does she need to submit rental agreement with me to the licensing agency for the change and so she can continue running the business in my house?
2. Assuming I ensure all items, residents and areas of the house are in compliance with RFCE law, how long will it take for me to get my own license?
3. Since the business is still running under her license and she wanted me to pay her the $40K up front, what should I do to protect myself to make sure she won't run away with the money or that I will still have the business that I paid $40K for when I finally get my own license?

Any advise is much appreciated. Thank you very much!!!