Separate Building

I am wiring a separate small guest house on residential property. It will have a MBO 125a panel inside. Do I need a separate disconnect on the outside? I know I have to install a ground rod and electrode to panel. Disconnecting means for this will be at main service on main house.
 
No unless you have another service at the separate building. By MBO do you mean main breaker which will serve as the disconnecting means for the separate structure?

230.85 Emergency Disconnects.
For one- and two-family dwelling units, all service conductors shall terminate in disconnecting means having a short-circuit current rating equal to or greater than the available fault current, installed in a readily accessible outdoor location. If more than one disconnect is provided, they shall be grouped. Each disconnect shall be one of the following:
 
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