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I have two business (located in two different locations) on two separate windows domains, approx 200 users (100 on each side), I already have routes and DNS setup between the two.

We have now decided to become a single company and they want users to login to their domain from any location.

Over time I'm sure we migrate to a single domain, but in the meantime is the bestway\only way to allow users to login from any location is to create an external trust between the two domains?

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Yes, if they have existing infrastructure use it, DNS, AD, DHCP, etc. make the most of it.

If you have to start installing services keep those on your primary domain and also have the trust in place. That way if and when you migrate to a single domain part of the job is done for you.

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