diff --git a/dvc/command/add.py b/dvc/command/add.py
index cbfd1ec96..c49a81207 100644
--- a/dvc/command/add.py
+++ b/dvc/command/add.py
@@ -40,9 +40,12 @@ class CmdAdd(CmdBase):
         for data_item in targets:
             Logger.debug('Creating state file for {}'.format(data_item.data.relative))
 
-            state_file = StateFile(fname=data_item.data.relative + StateFile.STATE_FILE_SUFFIX,
+            fname = os.path.basename(data_item.data.relative + StateFile.STATE_FILE_SUFFIX)
+            out = StateFile.parse_deps_state(self.settings, [data_item.data.relative],
+                                             currdir=os.path.curdir)
+            state_file = StateFile(fname=fname,
                                    cmd=None,
-                                   out=StateFile.parse_deps_state(self.settings, [data_item.data.relative], currdir=data_item.data.dirname),
+                                   out=out,
                                    out_git=[],
                                    deps=[],
                                    locked=True)
diff --git a/dvc/command/run.py b/dvc/command/run.py
index 4dc0ed4db..296344753 100644
--- a/dvc/command/run.py
+++ b/dvc/command/run.py
@@ -41,7 +41,7 @@ class CmdRun(CmdBase):
 
         if self.parsed_args.out or self.parsed_args.out_git:
             result = self.parsed_args.out[0] if self.parsed_args.out else self.parsed_args.out_git[0]
-            result += StateFile.STATE_FILE_SUFFIX
+            result = os.path.basename(result+StateFile.STATE_FILE_SUFFIX)
             Logger.info(u'Using \'{}\' as a stage file'.format(result))
             return result
 
diff --git a/dvc/state_file.py b/dvc/state_file.py
index e836524c6..4e2af5ae6 100644
--- a/dvc/state_file.py
+++ b/dvc/state_file.py
@@ -41,7 +41,7 @@ class StateFile(StateFileBase):
                  out_git=None,
                  deps=None,
                  locked=None,
-                 cwd=None):
+                 cwd=''):
         super(StateFile, self).__init__()
 
         self.cmd = cmd