Hi @mike_nelson
Welcome to the Canvas Community!
Here's the Instructor Guide on Groups with all the help topics.
In general to create student groups you'll need to do 2 things: create a grouping and then create the groups within the grouping.
Think of the grouping called Group Set as the purpose for why the students are in groups. For instance: Discussion groups, Project groups, Specific Assignment groups.
How do I add a group set in a course?
Then within the Group set,you can
When you're ready to do the assignment, you have a some options - How do I assign an assignment to a course group?
Like will all students get the same grade or grade individually?
Will all groups have to turn in the assignment on the date or will different groups have different due dates?
You can even do peer reviews with group assignments.
Hope these resources help move you in the right direction,
Stay home, stay healthy - Shar 
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