Squads are a system that was added on the 25 March 2011. The system is based on the guild system which most MMORPGs have, and the symbols in the middle of the rank badges are the Aurebesh initial for a player's rank.
To create a squad one must own a Jedi Membership. Players can choose a name for your squad, but they will have to wait a few days for the name to be approved.
The creator of the squad will automatically receive the rank of squad leader. Squad leaders have the ability to promote and demote squad members. So far there are three subordinate ranks: Trooper, Commander, and General.
To send players invites to squads, players click on their in-game avatars and click on "Invite to Squad". If a player is invited to a squad, they may choose to either decline or accept. Each squad will have their own personal world chat bar. The friends list will also have another tab with a list of members in a squad. Much like the friends list, players will have the option to teleport and private chat with squadmates.