Log in SQL Server Management Studio to create database.
Create a folder in "C:\SQLdomain\" as your domain name.
Click right mouse button on Databases to open database menus and click New Database link.
Assign a Database name as dbuser.
Assign above mention path to Path tab in both the Logical Names(dnname & dbname_log) and click Ok.
Click right mouse button on Security then select New then click on Login to create new login.
Follow the steps for General page.
Follow the steps User Mapping page and click OK to accept the above settings.
Your are done, your MS SQL database has been created.