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It would help if we knew the model of phone as not all Android phones have the same menu options. Generally you go to menu>settings>wireless & networks and tap on tethering options. You should have both a USB tether and a Portable hotspot option.
Mind you, depending on your carrier, you may need to have an additional data plan specifically for tethering. Please check with them, or simply be attempting to tether without one may violate your user agreement and they may add the plan to your account causing you to incur unexpected fees.