Business v. Trust
Typically, businesses are for business and personal assets belong in a trust. There is a long history of legal decisions that can protect trust assets. Whatever methods that are used, need to be done right to provide the largest possibility of success in your asset protection planning, if something should occur. This includes how to operate the business, what to name the business, and what distributions are permitted and what distributions increase the risk of piercing the entity by a creditor under the theory of alter ego.
There are benefits and drawbacks to both methods and they should be carefully considered and discussed with your attorney.