It can be done, and without all the taxation that is thought to be necessary - however, it DOES take a savy accountant to set it all up. Depreciation schedules and income flow are critical, but easily done once set up at the beginning. Additionally, transfering assets between entities can be a taxable event if not done carefully.
The assets usually have to be considerable (a million or more) to make it worth the paperwork. Properly managed insurance coverage can avoid most problems if your assets total less than a half million.
For what it's worth, I strongly recommend seeing an accountant as there can be state and local considerations to be taken into account.