Certain things such as acts of God, vandalism, tenant negligence, etc would not be tied back to your renovation and you should not be held liable. 7) Even though Chris hit on this, but I want to stress it. 

Most lawsuits must claim negligence and breach of duty, they always name the action of a person so if you are the manager it is likely you will be named in any lawsuit.

For those that are intelligent and disciplined, the additional risk is negligible (IMO). 

They difference will most likely be negligible, and that money could be better spent elsewhere.

It was explained that the prior owner personally managed the business, and therefore liable personally for negligence.

There may be WA state statutes that allow further penalties for purposeful tenant damage (willful, grossly negligent). 

Lessee shall be responsible for damages caused by his/her negligence and that of his/her family, or invitees or guests.

The difference in price is pretty negligible in the grand scheme of things. 

That may already be your intention, but I couldn't tell from your post.As to the management LLC, you aren't going to get any liability protection if you personally are the manager - any plaintiff is going to sue you personally for any negligent act you commit.

Due to my own ignorance (no denying it) and the repair company's recklessness and negligence most of my plumbing was destroyed in the repair process, costing me tens of thousands of dollars.