How do you recommend setting up management company to manage rental properties in a separate LLC and not in the LLC that owns the properties?
A separate management company creates quite a bit of extra admin work and can adversely affect your tax position where passive activity losses are concerned. If you have employees, separating them into a separate company can make sense, in order to segregate liability. Likewise, there can be tax reasons to run management through a separate company, though that is pretty rare. If you are the actual person managing the properties, a separate management company adds little to no benefit, but does add substantial cost, especially in the time required to track everything.
John Hyre