You must have SQL Server Management Studio installed to complete this step.
1. Start SQL Server Management Studio. When prompted connect to the local database server:
2. Right click on Databases in the Object Explorer tree view and select New Database:
3. Enter a new Database name and click OK
4. You have created a new SQL Server database, using default settings. You will now create a deployment package to install the standalone Windows application which creates the application tables in this database and installs the application which connects to tables in this database.