I know how to Create a shortcut (.txt) File in Finder, but I want to take it far a little bit [coding help]
Here you go that should work for you

try
    tell application "Finder" to set the this_folder ¬
        to (container of the front Finder window) as alias
on error -- no open folder windows
    set the this_folder to path to desktop folder as alias
end try

set thefilename to text returned of (display dialog ¬
    "Create file named:" default answer "filename.txt")

set thefullpath to POSIX path of this_folder &amp; thefilename

do shell script "touch \"" &amp; thefullpath &amp; "\""

set theFile to thefullpath as POSIX file as alias

tell application "TextEdit" to open theFile