Is it OK to setup a Corp/LLC to manage rental property that I own personally? I use this LLC to manage expenses and for tax purposes.

I currently have an LLC S corp to manage various residential rental properties that I own personally (deed is in my name). The owners of the Company are my wife and I (60/40). I use the LLC and associated bank account to deposit rent money from tenants (money is first deposited to my personal acct by tenant and lease is in my name). Basically the LLC is "headquarter" for expenses and taxes for all the rental properties. Should I setup a property management agreement with the LLC to be able to transfer money from my personal funds to LLC account so that the Company can manage all expenses from there?

Is there any benefit from the tax perspective doing the above? I thought it would be clean to have an LLC to file taxes on my rental properties and keep it separate from my personal tax return. I do have an umbrella insurance, so I do not care about the LLC liability benefits. Thanks in advance for your feedback.

Listen to Podcast 109, it has some insightful info on asset protection and how to set up your business.  I would also consult with an attorney.  

Yes, it is ok to do this, but it's important to know how this affects your tax situation.

You are converting passive income to self employment income.  This is not necessarily a bad thing and may work well for your financial goals.  But as an S-Corp you are required to draw a salary, pay social security, medicare and unemployment tax on it and, in some places, have worker's comp and general liability insurance.

@Gonzalo Cabrera

It is okay to set up a Corporation to act as the property manager for your properties. As Linda mentioned above the net income associated with the property management business will be converted to ordinary income which is subject to self-employment tax.

Some benefits of having ordinary income is that you can make retirement contributions based on this amount. You are also putting money away towards your social security. If social security is still around when you retire - you should receive greater social security benefits compared to others who didn't pay social security tax.

Please be aware that there are costs associated with this route such as paying to create an S-corp, annual S-corp tax return filings, annual fees with secretary of state, payroll tax returns etc.