According to some of the best legal minds in our country, the best method of both asset management and asset protection is an irrevocable trust. It is the preferred method of asset protection of the super wealthy in our country and has been for well over a century.  Why is this a better way to protect your assets? Because you transfer ownership of your assets to your trust(s) and you own nothing.  You choose two trustees to oversee and protect the assets of the trust and best interests of the beneficiaries. You also appoint a protector who watches out for your interests as the settlors/creators of the trust. You have the power to replace both the Protector and Trustees.  An extremely important thing to remember about irrevocable trust protection is that "People die, trusts don’t." These trusts are meant to be generational and will last until some future generation of your successor beneficiaries may decide to end them.  

Now let's revisit the LLC.  A business owner who has been made aware of proper business structuring can use an LLC to manage and operate their business as usual; however, they have the LLC owned by a trust.  In addition, they can have the assets that are used in the business owned by other trusts and have the LLC lease those assets to be used in the business.  A judgment against the LLC/business would be disappointing for the creditor because the LLC has no assets.  Another option for a business owner would be to have their business, which might already be an LLC, assigned to a trust.  It's as simple as assigning the member interest to the trust.  This allows the business the freedom to operate as usual including having its own EIN and bank business account.  

A corporation could be handled in the same manner and the same with a sub S corporation.  And trusts are typically more advantageous for a family than any sort of family partnerships.  The trust would offer asset protection for all involved with long term protection for future generations.  

Next, let's address Revocable/Living Trusts.  The IRS and our legal system consider them to be a dba or a rich man's toy.  Revocable/Living Trust activity, for tax purposes, is filed as part of your personal tax returns because it is not really considered as a separate entity.  If you can be the grantor/settlor/beneficiary and also a trustee then you do not have asset protection.  Living trusts exist for the purpose of allowing your estate to bypass probate (in most cases) and proceed directly to applicable estate taxes.  At no time during your life, or after your passing, does a living trust provide asset protection.  

Imagine yourself standing in a room next to a large box that represents a trust.  It contains all your assets.  If you wanted $50,000 and reached into the box to get it that means a creditor could do the same.  That's a Revocable or Living Trust.  But if there was a person standing between you and the box of assets and you asked them to reach into the box and hand you the $50,000 then that means a creditor couldn't reach in.  That person between you and the assets is a trustee.