It is believed that Lao Tzu worked as the Keeper of the Archives for the royal court of Zhou in the 6th century BC. This allowed him to read a lot which helped him gain wisdom. He never set up a school but had many followers. After many years he saw the decline in the kingdom and decided to go out and become a hermit. He was recognized by a guard when he was leaving through the Western gate of the city/kingdom and stopped. The guard asked Lao Tzu to record his wisdom which became his book Tao Te Ching.
Lao Tzu translates as Old master.
Lao Tzu is usually pictured riding a water buffalo.
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