Study the different elements involved in tablature. On the one hand, tabs are very simple, but they can be quite confusing if you are not used to them. Tabs are basically a diagram of part of the guitar fretboard. Six lines represent the six strings of the guitar. The bottom line is the low E string, while the top line is the high E string. Buy a few guitar books that feature tabs of your favorite songs. Learn a few of the songs and guitar solos. Pay close attention to the ornamentation symbols.
Play through the sheet music several times. Guitar sheet music allows for different interpretations of a piece of music. The same melody line or chord inversion may be played on different parts of the fretboard. Work out an interpretation that sounds good and has comfortable fingering. Play through the arrangement several times until it feels natural and comfortable.
Place the sheet music and the tablature paper side by side on a work desk. Count the number of measures in the sheet music and mark the same number of measures on the tab paper. Separating measures is the only way that tab is able to indicate a sense of timing.
Transpose the chords to tablature by first writing out the chord names. Sheet music, unless it has chord diagrams, typically doesn't name the chords. However, transposing sheet music to tabs is easier if you take the time to chart out the names of the chords. Write the exact fingering for the form of the chord that you are playing. A C major bar chord at the eighth fret would be as follows: 8 on the bottom line, 10 on the fifth line, 10 on the fourth line, 9 on the third line, 8 on the second line and 8 on the first line.
Transpose the guitar solo or melody. Mark the appropriate fingering where the notes are fretted. Add the relevant ornamentation symbols needed for playing the solo, such as "h" for hammer-ons, "p" for pull-offs, "/" for sliding up and "\" for sliding down.
Ask a couple of guitarists to play through the tablature translation. Ask for criticism and suggestions that will help improve the tab.