New Owners

[apprentice35]

I am starting a car dealership and need a 25,000 bond. As the sole proprietor I am thinking of incorporating within 6 months for tax purposes. What will happen to the premium I pay for my bond as a sole proprietor if I add 3 more owners? Do all owners have to apply for the bond?

[Tacoma]

Generally adding owners to an existing bond will require personal financial statements, possibly resumes and credit checks - as this will be treated as a new submission and therefore all owners with more than 5% ownership will be evaluated.

[apprentice35]

Thank you, how will the premium I have already paid be affected. Will I lose the first six month's premium or will there be an adjustment to cover the next six months?

[Tacoma]

Depending on how your additional owners credit check/financials pan out - your bond "might" be cancelled if they do not qualify for the current premium rate you have paid - OR they could have similar credit as yourself which would mean simply a new indemnity agreement for all owners/spouses and the name change.