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Create the site from the SharePoint start page (+ Create site; team site for collaboration, communication site for broadcasting), then add a list with + New, List and a document library with + New, Document library. Language cannot be changed after the site exists; libraries keep 500 versions by default; the list view threshold of about 5,000 items cannot be raised.

Key Facts

  • A team site creates a Microsoft 365 group; a communication site does not (Microsoft Support, accessed 2026-11-07).
  • List options are Blank list, From existing list (columns, not data), From Excel, From CSV and templates such as Issue tracker (Microsoft Support, accessed 2026-11-07).
  • New libraries keep the last 500 versions by default; Microsoft recommends the automatic version limit for storage (Microsoft Support; Microsoft Learn, accessed 2026-11-07).
  • List view threshold: about 5,000 items, not changeable in SharePoint in Microsoft 365; up to 30 million items per list (Microsoft Support; Microsoft Learn, accessed 2026-11-07).

Last updated by Errin O'Connor, Founder & Chief AI Architect, EPC Group

The direct answer

Build in this order. Create the site from the SharePoint start page and choose a team site if most members will contribute, or a communication site if a few authors publish to many readers. Inside the site, select + New, then List for structured items or Document library for files. Decide privacy, language, versioning and permissions at creation: the site language cannot be changed later, and permission changes are easier to make once than to undo.

Step 1: create the site

  1. On the SharePoint start page, select + Create site. Microsoft's communication-site article shows the same start under Build, then the Site card, in the left app bar; the two Microsoft pages differ, so use whichever your tenant shows.
  2. Choose Team site or Communication site, pick a template (Standard team is the general-purpose team template) and select Use template.
  3. Enter the site name, an optional description and site address, and for a team site the group email address.
  4. For a team site, choose privacy: Public (anyone in the organization) or Private (members only).
  5. Choose the default language. It cannot be changed after the site is created.
  6. Select Create site, add owners and members, then select Finish.

Administrators can also create sites in the SharePoint admin center under Active sites, then Create; if the address is taken, the admin center offers a modified one such as /sites/marketing2. If the create option is missing or greyed out, self-service site creation has been restricted under Settings, Site creation (Microsoft Learn, Manage site creation in SharePoint, accessed 2026-11-07).

Step 2: create a list

  1. From the site home page or Site contents, select + New, then List. From the Microsoft Lists app, select + New list.
  2. Choose how to start: Blank list, From existing list (copies the columns, not the data), From Excel, From CSV, or a template such as Issue tracker.
  3. Name the list. In the Lists app, choose where to save it: My lists or a SharePoint site. In a site, keep Show in site navigation selected if people should find it from the menu.
  4. Add columns for the data you track and set up views before people start entering items.

Where a list is saved decides who owns it and which sharing settings apply; see Microsoft Lists vs SharePoint lists for the governance side.

Step 3: create a document library

  1. In the site, select + New, then Document library.
  2. Start blank, from an existing library, or from a template; enter a name and an optional description; select Create.
  3. Open Library settings, then Versioning settings, and decide on content approval and, if needed, required check-out before files arrive.
  4. Add the metadata columns your search and retention will rely on, then upload or move files in.

Microsoft states that site owners can create lists and libraries and other members might not be able to (Microsoft Support, Create a document library in SharePoint, accessed 2026-11-07). Versioning is on by default and keeps the last 500 versions; the organization default can be set to an automatic limit, which Microsoft recommends for storage, or a manual one of 100 to 50,000 major versions, and a change applies only to libraries created after it (Microsoft Learn, Set default version history limits, accessed 2026-11-07).

Limits worth knowing before you build

LimitMicrosoft's published value
Items per list; files and folders per library30 million
Lists and libraries per site collection2,000
List view thresholdAbout 5,000 items per database operation; cannot be changed in SharePoint in Microsoft 365
Indexes per list or library20
Versions500 major by default; up to 50,000 major and 511 minor per major
Unique permissions per list or library50,000 supported; 5,000 recommended
File upload size250 GB

Sources: Microsoft Learn, SharePoint limits (accessed 2026-11-07); Microsoft Support, Manage large lists and libraries (accessed 2026-11-07).

Permissions after creation

Lists and libraries inherit permissions from their site, and items inherit from their list. The default groups are Owners (Full Control), Members (Edit) and Visitors (Read). To give a list or library its own audience, open its settings, choose Permissions for this list, then Stop Inheriting Permissions; Delete unique permissions restores inheritance. Sharing an item with someone who lacks access breaks that item's inheritance automatically, which is how permissions drift without anyone deciding it (Microsoft Learn, Understanding permission levels; Microsoft Support, Customize permissions for a list or library, accessed 2026-11-07).

Two retirements that change how new sites are built

SharePoint alerts are being retired: Microsoft's pages agree that alerts stop working by July 2026 but differ on when new alert creation ended for every tenant (September 2025 in the SharePoint service description, January 2026 on the Microsoft Support retirement page). Build notifications with list rules or Power Automate instead. SharePoint 2013 workflows were retired on April 2, 2026 with no extension, so approvals on new libraries belong in Power Automate (Microsoft Support, SharePoint 2013 workflow retirement, accessed 2026-11-07). See rebuilding workflows in Power Automate.

Where EPC Group helps

Creating one site is simple; keeping hundreds of them consistent is not. EPC Group sets up the site request flow, approved templates, naming, default library settings and the metadata the information architecture depends on, and trains site owners so new sites start the same way. See SharePoint information architecture before a migration and how to create a page in SharePoint Online.

Primary sources

Frequently Asked Questions

Should I create a team site or a communication site?

EPC Group asks who writes the content. Microsoft describes a team site as the place where most members contribute, connected to a Microsoft 365 group, and a communication site as a few authors sharing news, reports and status with a wide audience; creating a communication site does not create a Microsoft 365 group (Microsoft Support, accessed 2026-11-07).

Why is the option to create a site missing?

Usually because an administrator has restricted self-service site creation. Microsoft lets admins control it in the SharePoint admin center under Settings, Site creation, including sending users to an approved request page instead; turning it off does not stop users creating Microsoft 365 groups or teams, each of which gets a SharePoint site (Microsoft Learn, accessed 2026-11-07).

How many versions does a new document library keep?

Microsoft states that versioning is on by default for new libraries and lists and keeps the last 500 versions, and that the organization default is a manual limit of 500 major versions with no expiration; Microsoft recommends the automatic setting to control storage, and a changed default applies only to libraries created afterwards (Microsoft Support; Microsoft Learn, accessed 2026-11-07). Lists keep major versions only.

What is the list view threshold, and can it be raised?

About 5,000 items, and it cannot be changed in SharePoint in Microsoft 365. It caps how many items one database operation, such as a query, processes; Microsoft recommends indexed columns, filtered views and folders, and a list or library can carry up to 20 indexes (Microsoft Support, accessed 2026-11-07). The list itself can still hold up to 30 million items (Microsoft Learn, accessed 2026-11-07).

Should a list or library get its own permissions?

Only when its content needs a different audience from the site. Lists and libraries inherit from the site by default; Microsoft highly recommends built-in SharePoint groups, calls item-level permissions supported but not recommended, and supports 50,000 unique permissions per list or library while recommending no more than 5,000 (Microsoft Support; Microsoft Learn, accessed 2026-11-07).

Talk to a senior architect

A one-hour call with a senior EPC Group architect covers your site templates, the request and approval flow, and the library defaults new sites should start with. Email contact@epcgroup.net or call 888-381-9725.

Documented and anonymized engagements

Named engagements come first; anonymized summaries follow under the anonymized-engagement rule — the client is not named and every statement is EPC-reported. Documents behind named engagements are in the Evidence Center.

More engagements: NASA (agency-wide, across the NASA Centers) — Agency SharePoint Phase 1 Initiative: needs assessment, architectural review, governance, and a global SharePoint Center of Excellence for knowledge management, intranet and enterprise content management across the NASA Centers (2009–2010) · National Archives and Records Administration (NARA) — SharePoint records management and Center of Excellence advisory and implementation support (2010) · National Institutes of Health — SharePoint Center of Excellence design (2010) · Northrop Grumman — 'Finance I.R.M. Automation Process' statement of work on SharePoint (2010) · NASA Johnson Space Center — SharePoint Site Provisioning Solution (2009) · YMCA (Houston) — Microsoft Office SharePoint Server 2007 implementation (2007) · SharePoint Support and Custom Apps: Professional Services · SharePoint 2010 to 2019 Migration: Regional Bank (2020) · SharePoint Online Document Management: Transportation (2020) · SharePoint 2010 to Online Design: Global Law Firm (2018) · SharePoint 2016 Intranet Redesign: Energy Company (2018) · SharePoint Intranet Redesign: Financial Services · SharePoint Migration: Major Healthcare Network

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