At the top of the SharePoint pane click + Create site.
In the Create a Site pane select the Team Site tile.
In the site creation pane on the right-hand side of the screen type a new team site name in the box.
An Office 365 Group e-mail is automatically generated with the same name as your new site. If you wish you can edit this name.
In the Team site description box provide some details to let colleagues know the purpose of the site.
Click on the dropdown next to the Privacy settings box. Choose either Public - anyone in the organization can access this site or Private - only members can access this site to control who has access to your site.
Click Next.
Add the names or email addresses of colleagues you want to help manage the site in the Add additional owners box.
Add the name or email address of colleagues you want to be a member of the site.