How can a DB be created in SQL Server rather than locally (LocalDb) which is the default?

When you create a new ASP.NET MVC Application (using regular template "Internet") or ASP.NET WebApplication, you will notice the following connection string in the Web.config file:

<add name="DefaultConnection" connectionString="Data Source=(LocalDb)\v11.0;Initial Catalog=aspnet-MvcApplication1-20121005163323;Integrated Security=SSPI;AttachDBFilename=|DataDirectory|\aspnet-
 MvcApplication1-20121005163323.mdf" providerName="System.Data.SqlClient" />

Actually this helps the MVC Application or ASP.NET WebApplication to generate a database locally (within the project's App_Data folder) at run-time for accounts and login management (membership). If however you want to generate this database in SQL Server then you can make some quick changes in the above Web.config file to do that, so here is what you need replace in the above db mapping.

<add name="DefaultConnection" connectionString="Data Source=ITORIAN-PC;Initial Catalog=ASPNETMembership;Integrated Security=True;MultipleActiveResultSets=True;" providerName="System.Data.SqlClient" />

You probably have a different data source so change it before running. Now, run the application and click on the "Register" link to create an account and then you are all done.

Open the SQL Server Management Studio and look at the generated DB for this application.