establishing a subsidiary corporation in MA

What is the name of your state? MA
A Denver, CO based LLC is considering expanding into MA. The MA operation will have several individuals involved as investors and managers including members of the CO LLC. We are thinking that establishing a subsidiary company with all involved as new shareholders is the way to go. What do you recommend? Can you create a subsidiary of an LLC?

Not unless you want the parent company to be registered as a foreign corporation in MA with the tax liability.

It sounds like you just need the investors to register a new corporation in MA.