Let's break it down.

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Subject + verb + place / object / person

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I live in London.

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She lives in London.

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He lives in London.

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They live in London.

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We live in London.

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You live in London.

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It lives in London.

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Note that the subjects (he, she and it) change the verb so there is an 's' at the end of the work 'wake'. 

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Conversation:

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A: Where do you live?

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B: I live in Tokyo. 

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A: Where does your family live?

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B: They live in Cambridge. 

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A: Who do you live with?

 

B: I live with my family.

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Negative

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To make the negative use this form:

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Subject + do not / does not + live + place / object / person

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I do not live in Paris.

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She does not live in Paris.

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He does not live in Paris.

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They do not live in Paris.

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We do not live in Paris.

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You do not live in Paris.

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It does not live in Paris.

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Note that it is 'does not' for the subjects 'he', 'she' and 'it'. It is 'do not' for all other subjects. 

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Questions (?)​

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To make a question use this form:

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Do / Does + subject + live + place / object / person

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Do you live with your family?

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Does she live with your family?

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Does he live with your family?

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Do they live with your family?

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Do we live with your family?

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Do I live with your family?

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Does it live with your family?

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Note that it is 'Does' for the subject 'he', 'she' and 'it'. It is 'Do' for all other subjects. 

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