Wondering if there is a best practice? In my current office I used just a L2 subnet between the two. a routed interface on my core 3705. I am wondering if I can just create a vlan and configure it that way instead?
I'll assume you meant a 3750 here. Assuming a basic setup here, you should definitely house the SVI (Switched Vlan interface) on you core 3750 and propogate the vlans as needed throughout your network using VTP (Vlan Trunking Protocol).
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