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To create a new web site under a current site, select Create Site under Site Actions menu.
Create site
Enter title, description, URL name, select a template, select user permissions, link option and click Create.

Create site

There are 2 site template options: publishing site and collaboration site.

Select template

Go back to the parent site and select View All Site Content. The new web site appears under Site and Workspaces.

All site content

Each subsite has all the features of a parent site. It can inherit its parent permissions or have its own. It can show parent navigation links or only its own navigation. A web site can be set to be public or private.
Important note:
A deleted web page goes to the recycle bin. You can restore a deleted page if needed. However, a deleted website is gone forever and cannot be restored.

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