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When in multiplayer, you can press Esc to open your inventory, and there are 6 things above where your armor is located. The first are 2 swords which when clicked will cross each other, which means you have pvp turned on. It turns off when clicked again. Next to that you have 4 colored flags: the red, yellow, blue, and green flag. Clicking these will put you on a the color's team in which you can join forces in pvp or just locate other members in the world. The gray flag returns you to a neutral team which is what you are by default.
Hope this answers your question and any future ones.
Its hard to be clean when you play in the dirt.
Panther's Terraria Server
