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Do I need a subsidiary to do business in another US state?

Sales tax & state compliance

No. You register your existing entity as a foreign entity in that state, which is a filing rather than a new company.

Registration brings an annual report, a registered agent in that state, and possibly state income or franchise tax. One remote employee is often enough to require it.

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How to Handle Multi-State Tax Filing
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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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