I start up sqlite3 version 3.7.7, unix 11.4.2 using this command:
sqlite3 auction.db
where auction.db has not already been created.
If you are using the windows CMD you can use this command to create a database using sqlite3
C:\sqlite3.exe DBNAME.db ".read DBSCRIPT.sql"
If you haven't a database with that name sqlite3 will create one, and if you already have one, it will run it anyways but with the "TABLENAME already exists" error, I think you can also use this command to change an already existing database (but im not sure)