After [configuring Terraform Cloud settings](/docs/cli/cloud/settings.html) for a working directory, you must run `terraform init` to finish setting up. When running this command, Terraform may guide you through an interactive process where you may choose whether or not to migrate state from any existing workspaces.
1.**Fresh working directory:** If the working directory has no existing Terraform state, no migrations will occur. You can start using Terraform with Terraform Cloud right away, creating workspaces and starting runs.
2.**State backend or local state:** If the working directory already has state data in one or more workspaces (using either local state or a [state backend](/docs/language/settings/backends/index.html)), Terraform will ask if you're like to migrate that state to new Terraform Cloud workspaces. You will need permission to manage workspaces in the destination Terraform Cloud organization. You may also be prompted to rename the workspaces being migrated, to better distinguish them within a Terraform Cloud organization.
3.**`remote` backend:** If the working directory was already connected to Terraform Cloud with the `remote` backend, Terraform can continue using the same Terraform Cloud workspaces. The local names shown for those workspaces will change to match their remote names.
The rest of this page briefly describes cases 2 and 3.
## Migrating from Local State or Other Backends
If the working directory already has state data available (using either local state or a [state
backend](/docs/language/settings/backends/index.html)), Terraform will ask your approval to migrate
that state to Terraform Cloud. This process is interactive and self-documenting, and resembles
your workspace names more contextual information. Unlike Terraform CLI-only workspaces, which represent
multiple environments associated with the same configuration (e.g. production, staging, development),
Terraform Cloud workspaces can represent totally independent configurations, and must have unique names within the Terraform Cloud organization.
Because of this, Terraform will prompt you to rename the working directory's workspaces
according to a pattern relative to their existing names, which can indicate the fact that these specific workspaces share configuration. A typical strategy to start with is
If the working directory was already connected to Terraform Cloud with the `remote` backend, Terraform can continue using the same Terraform Cloud workspaces. The local names shown for those workspaces will change to match their remote names.
The [`remote` backend](/docs/language/settings/backends/remote.html) was the primary implementation of Terraform Cloud's [CLI-driven run workflow](/docs/cloud/run/cli.html) for Terraform versions 0.11.13 through 1.0.x. We recommend using the native `cloud` integration for Terraform versions 1.1 or later, as it provides an improved user experience and various enhancements.
The tags you configure do not need to be present on the existing workspaces. When you initialize, Terraform will add the specified tags to the workspaces if necessary.