First off, welcome to the Cafe! If you need advice or would like to help give advice to others in their fantasy travels, feel free!
I'm going to move your question into the "Football Leftovers" section so it can be addressed in the proper place.
You can create private leagues on many, many different sites. Yahoo is one of the most popular free ones around, and you can make a private league there. If you want to have better functionality, myfantasyleague.com is a pretty good site as well. I believe you do pay for having the league there, but you can set up all sorts of options such as having dynasty/keeper leagues and live scoring updates.
As far as finding players, posting about your league here at the Cafe is a good place to find some! Just post your league info in our "Classifieds" forum to find members for your league. Most of the people that use this site are addicted to fantasy football like yourself, so you may be able to field a full 12 team league from doing that!