A letterhead is the heading at the top of a sheet of letter paper (stationery). That heading usually consists of a name and an address, and a logo or corporate design, and sometimes a background pattern. The term "letterhead" is often used to refer to the whole sheet imprinted with such a heading.
Many companies and individuals prefer to create a letterhead template in a word processor or other software application. This generally includes the same information as pre-printed stationery but without the additional costs involved. Letterhead can then be printed on stationery (or plain paper) as needed on a local output device or sent electronically. (Gotten from Wiki, read more)
 HOW CAN I CREATE ONE?

First and foremost, we open the program (MICROSOFT WORD). After opening you notice the program comes with an already created document file. A letter header can  be for either a company or an individual, but the method of creating remains the same..
What you quickly do is to create a new document, then set up your page in the way it will best suits you.
The below video will trill you on how to set up your page, You're free to watch

When you are done with the setting up of your page and your paper size and all that, the next thing to do is to insert your company or individual logo to the header section of your letterhead. It is very essential that the header and the footer are edited so it can be possible for you (the user) to add text to the template... But how can this be done ? All you need do is to click on insert and then select header which automatically comes with its footer.... After inserting the header and footer which usually comes together, all you need do is to insert the logo as said before. You can do this by clicking on insert and then click on pictures, then select the drive you have the logo, open the drive and select the picture and lastly click OK.. it should talk some seconds before opening.
When the picture is first uploaded to the program, its size can only be increased or decreased, but with the help of text wrapping you will be able to move the picture from one direction to another..
(SEE HOW TO TEXTWRAPP A PICTURE  IN WORD)

We have added the logo, it doesn't stop there, so lets proceed with adding the other components, It is expected that we select a desired font and also a good font size that will make the design look mature and then we then also have to add our Company's name, company's address, the services we render, a water mark if possible, our reference, the date and other information's related to the company...

When  your done with the design simply save it as a "read-only" file, you can do this by right-clicking on the file (after it has been saved). Click on properties, you will then see check boxes which control the file's attributes among which One of the check boxes will be "read-only", simply tick this box and then click OK, this will stop the file being overwritten by an user, your not an exception unless you temper with the above setting. If for one reason or the other the need arises for you to edit the template in the future, it can also be done by right-clicking the document , select properties, and un-check the read-only attribute check box.

An example is seen below



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