While looking at the examples of ている form and usage in my textbook I came across this sentence
かぞくは とうきょうに すんでいます
My family lives in Tokyo.
I know from what I've been reading on the internet that that the verb here is a state and that the に here marks the location that the state is taking place in. Basically I'm wondering when a verb can or can't be a state. All the examples I've seen have used ている form with に to make sentences like this which makes sense but it makes me question my placement of the the particle で in some of the ている practice sentences I made like this one.
みちこさんは バスていで バスを まっています
Michiko is waiting for the bus at the bus stop
Any help/explanation with this is appreciated and If Its unclear what I'm asking say in the comments and I'll try to add to the question.