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Do I need to create a full email account for each address I want to forward?
No. If your domain is mydomain.com and you want to forward email from email@example.com to firstname.lastname@example.org then you don't need to create a mailbox for email@example.com.
Can I forward email for an existing mailbox?
Yes. All that will happen is that a copy of the incoming message will be left in the original mailbox inbox, and another copy will be forwarded to any forwarding addresses that are configured.
What if I want to forward an email address to multiple destinations?
Just create multiple forwarders - one for each destination address.