Business LLC Structure

[Timothy Carlin]

Trying to get the business structure correct starting off. 

I own some rental property already and it has been going. In an effort to take the next step I am buying an 11 unit building with two other friends / investors, all equal owners. 

We plan to self manage the property. 

In starting our new LLC for this based on conversations with our lawyer / insurance agent / other investors here is a rough outline of what has been suggested to us. But there seems to be some question as to is this correct.

We started a LLC that will act as the holding company. Holding Company LLC

Holding Company LLC 100% owns an LLC that will own the property we are under contract to buy. Property Owner LLC

Holding Company LLC 100% owns an LLC that will manage the property. Management Company LLC

the idea is that the Management company has a contract with the Property Owner LLC to deal with everything. and that basically all the money flows through the management company. All utilities, garbage, rent etc all goes through the management company. then when the management company has funds left over they get paid to the Holding Company. This is also trying to simplify things to scale. So when we buy a second building it gets its own LLC but it too has everything flow through management company.

How to properly structure all of this seems like a common topic but i am having trouble finding a good source of info to break it all down. 

the current big question is the insurance company will have a policy with the Property Owner LLC and therefor how does that effect the Management Company LLC. Do i need a separate policy for the management company? Do the leases get signed with the management company or the property owner?

any info or direction to other sources on this topic would be greatly appreciated.

thanks

TC