How do I make a dedicated Terraria server?

Download the dedicated server package here:
https://terraria.org/news

I'd recommend assigning the server a static IP address. You can set this in the control panel under network settings --> IPv4 settings.
After extracting and running the server program, it will prompt you to select the world, max number of players, port number, password, and "automatic port forwarding", which I've never had any luck using.

The stock server program gives you access to some basic commands. Once it has a world up and running, you can use the console to change the time to dawn/noon/dusk/midnight, and settle falling liquids. You can also kick and ban players. A list of all the commands can be found here: http://terraria.wiki.gg/Server

I suggest using Tshock if you want even more commands, the ability to use them through the client, and to create user groups. If you're just doing a legit LP with a few players, you'll be fine without this.

As always, backup your character and world files regularly! (Especially if you're making a public server.)

If you're not just playing over LAN:
You can change the port forwarding settings in your router to allow connections through to that computer from outside your home network. (You can look up the instructions for your specific router brand & model on YouTube. The IP address you will use is the IP address you set on the server. The internal port must correspond to the port you selected for the server program to listen on, and the external port is up to you. Despite what others may say, choosing obscure port numbers doesn't boost security, so use whatever you want.) Be sure to enable BOTH TCP and UDP.
To find your external IP address (this is the IP address you will give to anyone outside your home network), just type "What is my IP?" into Google. The port number you will provide is the same as the one you selected as the external/from port when configuring your router's port forwarding settings.
 
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