The basic rule is that state courts–including small claims courts–only have the power to hear cases involving individuals who live in or are present in the state. Lawyers call this jurisdiction.
If you want to sue someone who lives in another state, you will have to sue in the state where the person lives, not in the state where you live. Often you can file papers with the court by mail, but you'll have to follow the state's rules when serving the court papers on the defendant