To create an event in Facebook, first log in to your Facebook account. On the upper right hand side of your home page is the section for upcoming events. Just below that is a search box titled "what's the event?" Simply type in the name of your new event in that text box, and as you enter the text, additional boxes will show up below including date, time, where and who's invited. (You could also start by clicking the "events" link on the left hand side of your page and following that to the "create an event" option.)
After you select your date, place and time, next, start filling the "who's invited" space with the first or last names of your guests. Facebook makes this easy because as you type, your Facebook friends list will appear in a dropdown menu; simply hit enter on the names of people you want to invite. If you want to include people who aren't on your friends list, add them by copying in their e-mail addresses.
Another way to invite guests is to click on the "add details" button just after you've created your event and "select guests" once Facebook takes you to create an event screen. This option pulls up your entire friends list and allows you to check each person you want to include, as well as include others via e-mail address.
Finally, you get the option to list your event publicly for everyone to see or to keep it private for only those invited. The two boxes are located just beneath the select guests button, and you'll also be able to decide whether or not your guests can invite guests of their own.
From the "add details" page, you can provide more information about the event's date and time, plus click the "more info?" button to offer details on the address, what guests should bring, entry fee (if there is one) and include links to the venue.
Keep reading for the details on how to finish setting up your event in Facebook.