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An app, no. Depending on your carrier, you can have that functionality enabled. I use mine that way all the time and it works like a charm.
 
I believe both Verizon and at&t's new share plans include tethering. Not sure how u go about using it on an iPhone though


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Depending on the country and ISP provider. NO need to jail break anything. I live in UK and have O2 contract. Tethering is a function of my IPhone and IOS (Iphone 3GS) . Most of the time I use WIFI, and if there is no WIFI I use 3G or 4G and tether my Ipad mini to my phone (set-up a Bluetooth connection between Ipad and Phone, then set-up hotspot and enable tethering on the phone, et voila) and in this case it will eat data from my contract.
 
If its available to you, you'll find it in Settings/Personal Hotspot. Turn it on, then select the name of your iPhone in Settings/Wifi on the iPad.

Just be careful though. Just because it's there, doesn't mean you won't get charged for using it. Check with your carrier first.
 

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