Sunspots are caused by disturbances in the Sun's magnetic field welling up to the photosphere, the Sun's visible "surface". The powerful magnetic fields in the vicinity of sunspots produce active regions on the Sun, which in turn frequently spawn disturbances such as solar flares and coronal mass ejections (CMEs).
What causes sunspots on Earth?
If sunspots are active, more solar flares will result creating an increase in geomagnetic storm activity for Earth. Therefore during sunspot maximums, the Earth will see an increase in the Northern and Southern Lights and a possible disruption in radio transmissions and power grids.
Where do sunspots start?
Sunspots do not appear in random locations. They tend to be concentrated in two mid-latitude bands on either side of the equator. They begin appearing around 25 to 30 degrees north and south of the center.