You can add unlimited folders and sub-folders to your workspaces.
A. Add a New Folder
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The "Create New Folder" dialog opens.

The folder is created and displayed in the folder structure in your workspace.

B. Drag and Drop a Folder
You can now add content objects such as Files, Links, Tasks, Notes and Discussions to the folder.
Notes:
If you have enabled in your Preferences the view of "Object Folders", you will also have the oportunity to select which specific object to limit to the folder you are creating.
To learn more about Object Folders see: Advanced Features: Object Folders.
To learn more about folders, see the Folders FAQ section.