I've been down this path before, for a similar reason. I purchased a Cherokee years back and leased it back to a flight school. I setup an S Corp to own it, and funnel all operating expenses and rental revenue. The flight school managed the maintenance (and billed me).
The tax benefits were good. I didn't have to pay the PA sales/use tax because it was purchased as equipment to generate revenue for the business. I was able to take the section 179 deduction on it and any avionics and other improvements, which offset the revenues/profits from me experiencing a big number on the business income (from K-1 form) line of my personal 1040.
In theory, I was shielded from liability if a student/renter crashed it into someone's house (thankfully, that never happened) because it was structured as a bonafide business. There are numerous things a corporation must do annually to hold up to the corporate sniff test, which I did. In hindsight, I could have probably set it up as an LLC and avoided some of the operational/administrative headaches of maintaining a single person S-Corp.
If I flew the plane myself, I paid the flight shcool an hourly rental, at a discount rate. Like a "frequent flyer" discount, if you will.
In the end that money basically went into the overhaul/maintenance fund anyway. If I, however, were to get in an accident that caused injury or property damage, there's absolutely no question that I would be on the hook for it. Every possible lawyer involved would start with me and then sue everyone down to the tire manufacturer. No court in this country was going to let the corporate veil protect me from my own negligence (even if the accident wasn't my fault).
So, if you want to put a plane into a business structure to protect yourself and assets, then you're doing it for the wrong reasons. As Ron said, get enough insurance that you feel comfortable with to protect you in the unfortunate incident that requires it. Because when the you-know-what hits the fan, you're going to be in court for years to come. The LLC or corporate formation papers will be worth as much as the paper they're written on. Your insurance policy will be your savior (hopefully).
If you want to gain some possible tax benefits, then absolutely stop listening to anyone here and consult an accountant who has aviation experience, along with a lawyer for the corporate/LLC setup. There may or may not be good reasons to do it, and everyone's mileage will vary.