To create a new folder, go to Site Settings > Documents and Media.
Click the +Create Folder. Name the folder and click the save icon.
To add documents to this folder, either drag and drop them from other folders, or click Add File in the bottom left corner to import them from your computer. Click Close to exit the Document and Media Manager.
(For help on uploading a document, Click Here)

Add Sub Folders for Documents
Hover your mouse over the main level folder you would like to create a sub folder under. Click the Edit icon (pencil) in the top right and select New Sub Folder.

Name your folder and click the Save icon.

To add documents to sub-folders, either drag and drop them from other folders, or click on Add file to import them from your computer. Click Close to exit the Document and Media Manager.
(For help on uploading a document, Click Here)