Thanks Form tax perspective, your LLC can make payments directly to bank and get tax deductions or you making a payment will qualify for deductions as well.The SMLLCs are disregarded for tax purpose, so both ways are ok. 

@Keith Sagun for state licensing purposes there is no such thing as a certificate.

I've heard from several people that you should put it in an LLC for personal protection purposes, but also that it offers many tax advantages, but then I've also read online that an LLC has more downsides than benefits if you are a first-time investor, so it is not worthwhile.

Do you intend to house hack or is this strictly investment purposes ie you wont live there?

This way you don't have to do 2 tax filings with the state for 2 LLCs (basing this on what we do in KY).You already have the trust and LLC for asset protection, not sure what purpose the property management LLC will add.

I'm assuming you're only asking about LLC transfer for tax purposes.

If you’re over the $500k gain, congrats, but you would probably still be better off just renting the home for a year or 2 and exchanging the part over $500k instead of building an du just for that purpose. 

I've created several LLCs for different purposes (coaching business, rental business, etc.) very quickly and easily myself through my state's secretary of state website.

You can set up a management company if there's a purpose, such as generating qualifying SE income to fund retirement accounts and such/I highly recommend working with a REI tax strategist to make sure both of these are appropiately setup.

My circumstances are as you describe, and I got the study done, am a real estate professional for tax purposes, while hubby has the W-2.