Hi tc75,
It sounds like you can't format notes on your iPhone. We're glad you've joined us in Apple Support Communities. Let's see if this helps.
Follow the advice in the section "Get started" in Use Notes on your iPhone, iPad, and iPod touch. You'll want to check out the text that says "To use the latest features of Notes, make sure that you set up Notes with iCloud or have notes saved on your device. Many Notes features won't work with other email providers."
If the issue remains after following those steps, let us know what accounts you see in Settings > Notes > Accounts.
We hope that helps with your question and take care!