Once you’ve filled everything out, tap continue. You will also be asked to choose a password, pick and answer three security questions. You’ll be asked to enter in a birthdate, name, and email address. Go to Settings > iCloud and tap Create a new Apple ID. Once you’re all signed out of your iTunes/iCloud account, you can create a new account.
An Apple ID is the account you use to access Apple services like iCloud, the App Store, the iTunes Store, Apple Music, and more.