where you need to enter: Name – domain name of the new website Code – a parameter that will be used...
and under the Display Settings tab in the dropdown set Is Anchor to Yes.
Once the category is selected, under the General Information set Is Active to Yes
If you want both your websites to share same “Default Category”, select it by clicking on it on the left....
Log in to your Magento admin panel. Go to Catalog -> Manage Categories.