 What it means to be "transacting business" varies from state to state, according to each state's specific rules and regulations.For example, California may require a corporations to register based upon the compensation it pays to residents of the state, even if its revenues are generated outside of the state.The two basic ways to organize a corporation that operates in multiple jurisdictions are 

Operating a corporation as a holding company and separate corporations in each state, or operating as a single corporation with registrations as foreign corporations in all the other states than its home state, is a matter of choice for the corporation's directors and officers depending on how it operates, damage liability and tax consequences.