Management companies are set up quite often. However, the IRS scrutinizes these structures and the only way they will pass the muster is if there is a good business purpose behind it. Saving state income taxes has been accepted as a legit business reason in some contexts, however, it is doubtful that you could support a solid business reason to set up the management company given your facts and situation.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
