We are currently working on getting a dealer’s license in Alabama. This question is for people who currently have a dealer’s license as well as insurance professionals. We have been told that it is necessary to apply for the bond as an individual, even though the company doing business is an LLC. I always question giving out a personal social security number, which they require because they run credit. I am wondering why the credit of the company applying for the bond is not sufficient (assuming the company has a credit history - I realize that sometimes it does not.) I am not concerned that the credit will come back bad, just questioning the process.
The answer I have already received is that the insurance company then has someone to personally “go after” if they have to pay out on the bond. Doesn’t this defeat one of the purposes of forming an LLC?