Working for yourself has its benefits. You control the schedule and choose the clients/discipline you’ll work for. But self-employment isn’t without challenges. You’re responsible for all the financial investments that can range from tools and equipment to taxes, retirement savings and liability. The type of business entity you choose to operate under can help ease the burden that comes along with the risk of being sued.

“Liability exists in our field,” says Mary Bramley, a Randolph, Mass., farrier. “It’s going to come at you from places that you really don’t expect it to.”

There’s a potential for financial obligations beyond taxes, operating expenses and creditors. Potential lawsuits from injuring a horse can bring hefty price tags.

“It’s not just the value of the horse that you could possibly be liable for, it’s also business that you might be taking away from a breeding operation or a trainer or a camp,” says…