A distinct LLC for management establishes a record-keeping division between property ownership and management activities, which may be useful for bookkeeping and upcoming audits, even though income still flows through to you.

And during the Audit the auditor thought my wife was buying gooddies for us personally and dissallowed anything related to the London Trip and the trip to Tel Aviv where again I have clients and had business meetings..

Is it a reputable company and will the documentation provided from the study hold up in an audit?

The home office deduction is ripe for an audit. 

The risk is high that they will be recategorized by the IRS upon audit or examination, which means that you've overcontributed to a retirement plan. 

Education and research hours, "managing the property manager" all have failed under audit historically.There is a lot more nuance here I could go into, but I would strongly advice you talk with a real estate-focused tax professional.

For example if a licensed brokerage is audited by the state and they cannot furnish buyer broker agreements for active clients the division could fine heavily the brokerage or remove their license.

This would only ever come up in a formal IRS audit, but the regulators don't like 1031 properties that are purchased below market value or rented below market value.  

I've even thought of buying a rental house to offer to a full time employee to move to this area but I'm not sure if that would just create more headaches in the long run) Employer responsibilities; payroll taxes, administration and audits.

However I understand we'd be at high risk of audit if we go through with it.PS.