To create a term set, follow these steps:

1. From the SharePoint admin center, select Classic features, and then select Open under Term store:

2. If this is your first time administering the Term Store, you'll need to grant an account permissions. In the tree-view navigation pane, select Taxonomy_<id>, and then add an account to Term Store Administrators and click Save.
3. Click on Taxonomy_<id>, then select New Group.
4. Fill out the properties for the name of the group managers and contributors and then click Save.

5. Point to the new term set (or an existing one if you have previously configured a group to be associated with a site), select the arrow that appears and then select New Term Set.
6. Enter the value you want to use as the default label or name for your term.
7. In the Properties pane of the Term Store management tool, click the General tab and then fill out the required information about the new term set:
   • Term Set Name: Enter a value for the name for your term set.
   • Description: Enter a description for using the terms.
   • Owner: Specify an owner.
   • Contact: Enter an email address of a user or group for feedback purposes.
   • Stakeholders: Add the names of groups or users that should be notified prior to changes being made to the term set.
   • Submission Policy: Specify whether you want the term set to be Open or Closed.
   • Available for Tagging: Select the checkbox to make the terms available for tagging items. If the term set is still in development or not ready to be deployed, clear the box.

8. Select the Intended Use tab, and then specify the following settings:
   • Available for Tagging: Select this checkbox to make this term set available for tagging content.
   • Use this Term Set for Site Navigation: Select this checkbox to enable usage for managed navigation.
   • Use this Term Set for Faceted Navigation: Check this box to enable refiners based on managed properties on the managed navigation pages. This is an advanced setting.
9. Select the Custom Sort tab and then select a preferred sort order. By default, terms will be sorted alphabetically for the current language. Select Use custom sort order so that you can organize terms to always appear in a consistent order.
10. Select the Custom Properties tab to specify any additional shared property name and value data about the term set.
11. Click Save.