Using the Command Line

Note: You must have root access to add a user. If you are logged in as a regular user and know the root password, you can type the command su. This will prompt you for a password. Enter the root password correctly and you will have root priviledges until you type exit. Typing exit will take you back to regular user mode.
    After changing to root, the command adduser can be used to add users to your machine. In Red Hat Linux, the adduser command is located in the /usr/sbin directory. To invoke the command you might have to type /usr/sbin/adduser (the full path) if /usr/sbin is not in your path. For further information about adding to your path see the Setting Your Path guide. To add a user with the default values for the user’s home directory and shell type, simply type the following command:
adduser username where username is the name of the user you wish to add.

In Red Hat Linux, the default home directory is /home/username,
and the default shell is the bash shell. The adduser command has many
other options to choose from. Below is a list of all switches for the
adduser command.

adduser  [-u uid [-o]] [-g group] [-G group,...][-d home] [-s shell] [-c comment] [-m [-k template]] [-f inactive] [-e expire mm/dd/yy] [-p passwd] [-n] [-r] nameadduser  -D [-g group] [-b base] [-s shell] [-f inactive] [-e expire mm/dd/yy]

    The -D switch is used to either view the current
default values for adding a user or to change the default values for
adding a user. Typing adduser -D will display the default settings.
    To use the switches, type adduser -switch switchvalue. For instance, to add the user bob with the home directory of /home/users/bob, type the following command:
adduser bob -d /home/users/bob.
    The last step to adding a user is to set the user’s password. To do so, type the following command:
passwd username (where username is the username of the new user)
This
will prompt you to enter a password. Enter the password and press
enter. You will be asked to confirm the password. Type the password in
again and press enter. As long as you typed the same password in both
times, you have finished adding a new user. If you did not enter the
same password both times, you will be asked to reenter the password
again until you confirm it correctly.     For additional information
about groups see the groupadd: Adding a New User Group guide.

ref: http://www.linuxheadquarters.com/howto/basic/adduser.shtml

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