Only reduce bit-depth when absolutely necessary.
Only apply dither when reducing bit-depth.
If you'll be doing more processing (mastering/etc - post export), always export at 24Bit (or 32Bit Float).
You don't want to "master" at 16Bit resolution... as this introduces more rounding-error which can make the audio sound "fuzzy/buzzy" for lack of a better term.
If you'll be using Sonar's dither, I'd recommend one of the Pow-r algorithms.
I prefer Pow-r algorithm 1.
Much smoother results than the default triangular dither...