Okay, how do I use its/it's? Great question!
It's simple, just like the other trick we had for you're/your.
It's means it is.
Its shows possession. Its means that it owns something.
I would say the following and be correct:
It's a lovely day outside. Here in this sentence, I'm really saying, "It is a lovely day outside."
Its leash is over there! Here I am talking about where my dogs leash is. Notice that I did not use it's because if I did, you'd have this strange sentence: "It is leash is over there!" That, my friend, makes no sense at all!
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