Is there a way to create a client state or is there some kind of work around that people have found is pretty much the same? I've preformed a search on this topic but haven't found much info.
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To get an existing state to become a client simply get them to pay tribute (wether or you do it the diplomatic way or through war does not matter), but as far as creating new ones, the only way in the game is to let a barbarian horde take some province(s) and demand that they become a client (obviously without crushing them, then you only get money and slaves (and popularity and potentially more loyal troops for the victorious general)).
The Total Conquest Mod also has a dodgy workaround for releasing independent states. Unfortunately, there's no way in the game's scripting code to force a country to become a vassal (or even an ally), so the best I could do was raise the relationship to +200 and let the player do the rest.