How Do I Set Up a Shared Environment Within iCloud?

I’m having difficulty in creating a shared folder(s) using iCloud. I have a family account with iCloud with 200Gb space. We have two unique Apple ID’s and work from two different devices (iMac & MacBook). We share the 200Gb.
I have a set of folders that we both work from. Right now I have a shared server, albeit crude, using a networked drive on a time capsule. The time capsule is not backed up and only used for common documents. But when we have added new documents we then post them to the shared folder on the time capsule.
Whereas we now share an external drive, the iCloud, I was wondering if a shared folder could be created that need not be on the iMac or MacBook, only if you want it to be, but still accessible by both and each would have access to new documents created without having to physically share each time.
I hope I have made sense, and I’m sure what I’m doing is not the most efficient.
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Hayward