Setting up a new business email account in Microsoft 365 is a fundamental task for businesses looking to onboard new employees or expand their team. Whether you're an IT administrator or a business owner managing your own Microsoft 365 environment, this comprehensive guide will walk you through the entire process of creating a new user account and professional business email address. This guide covers everything from Microsoft 365 subscription setup to creating professional business email accounts with custom domain configuration

Important: This guide is specifically for creating business email accounts in Microsoft 365 Business subscriptions. If you're looking to set up a personal email account, you'll need to use Outlook.com or another personal email service instead.

Why Choose Microsoft 365 for Your Business Email?

Microsoft 365 business email solutions provide professional business email with custom domain names (yourname@yourcompany.com), making your organization look credible and trustworthy. Business email through Microsoft 365 includes:

 

 

 

• Professional email addresses with your company domain
• Large mailbox storage (50GB or more depending on your plan)
• Enterprise-grade security with spam filtering and malware protection
• Integration with Microsoft Office apps like Word, Excel, and Teams
• Mobile access to check business email on any device
• Shared calendars and contacts for team collaboration

Part 1: Microsoft 365 Business Subscription Setup - Getting Started with Professional Business Email

Before you can create business email accounts, you need to have an active Microsoft 365 Business subscription. If you don't have one yet, follow these steps to get started.

Choose the Right Microsoft 365 Business Plan and Subscribe

Microsoft offers several business email plans. When setting up Microsoft 365 for business email, choosing the right email subscription plan is critical for your organization's needs. Here's what each includes:

**NOTE** (Prices are subject to change at Microsoft's discretion; therefore, these may not reflect the current pricing.)

Microsoft 365 Business Basic ($6/user/month)

• Web and mobile versions of Office apps
• 50GB business email mailbox
• 1TB OneDrive cloud storage
• Microsoft Teams
• Best for: Basic business email needs

Microsoft 365 Business Standard ($12.50/user/month)

• Desktop Office apps (Word, Excel, PowerPoint, Outlook)
• 50GB business email mailbox
• 1TB OneDrive cloud storage
• Microsoft Teams
• Best for: Small businesses needing full Office suite

Microsoft 365 Business Premium ($22/user/month)

• Everything in Business Standard
• Advanced security features
• Device management
• Best for: Businesses requiring enhanced security

Exchange Online Plan 1 ($4/user/month)

• Business email only
• 50GB mailbox
• Best for: Email-only needs

Exchange Online Plan 2 ($8/user/month)

• Business email only
• 100GB mailbox
• Advanced archiving and compliance
• Best for: Large mailboxes or compliance requirements

Compare Microsoft 365 business email plans and Exchange Online pricing to find the best business email solution for your company:

Purchasing Your Microsoft Subscription direct from Microsoft

To purchase a Microsoft 365 Business Subscription, you must navigate to Microsoft's website and complete the following steps.

Step 1:  Pick a Microsoft 365 Business Plan Subscription

1. Navigate to Microsoft 365 Business Plans and Pricing | Microsoft 365
2. Click "Plans with Teams" tab
3. Pick a Plan and proceed to click the "Buy Now" button

Step 2:  Set up your Subscription

1. Next, you will set up your subscription. Select how many user licenses you will need. Choose the length of your subscription (monthly/yearly) and pick how often you will be billed.
2. Enter your desired business email address, for example, andy@contoso.com, and Microsoft will do a check to see if that email address exists in their systems already. Once verified, you can click the "Next" button. Proceed to click next when you are done.
3. It will now show you that you need to Create a New Account
4. Fill out the customer information form
5. Uncheck the checkbox so you do not receive calls, emails, solicitations, or spam.  
6. Click the "Next" button

Step 3:  Next, you will set up your Global Admin Account

Now set up your Global Admin Account. Select a username using the  .onmicrosoft.com domain name (This is completely different from the domain name you will use for your email domain. This is a placeholder domain.) After that, pick a Global Administrator password and click the "Next" button.

Step 4:  Next, you will set up your subscription's Payment Method

1. Next complete the "Add payment method" form and click the "Save" button

Step 6: Review and Confirm the subscription

1. Review and confirm the subscription details
2. The Order Confirmation Page: it confirms your order if it was successful, then prompts you to set up Multifactor Authentication.

Step 7: Login to your New Microsoft 365 Subscription & Configure MFA

1. Enter your password and continue by clicking the "Sign in" button
   
2. Now on the "Add extra security to your account page" click the "Next" button to proceed to the next screen.
   
3. Next, we will install Microsoft Authenticator on your Mobile device. If you already have the Microsoft Authenticator app installed on your device, you may proceed to Step 6.
   
4. On your iPhone open the "App Store" and search for the app "Microsoft Authenticator" as shown below.
   
5. Proceed to Download the App
6. Find and open the "Microsoft Authenticator" app on your mobile phone
   
7. Once the app is open and your are at the main screen shown below, click on the "+" sign on the top upper right of the app screen.
   
8. Next click on "Work or school account"
   
9. Two seperate options will pop-up, select the "Scan QR code" option
   
10. Proceed to allow permission to use your devices camera if prompted to.
11. Next back to your computer click on the "Next" button

    

12. Once more click on the "Next" button
    
13. Now Proceed to scan the QR code on screen with your mobile device
    
14. You will now see your account listed in the Microsoft Authenticator App
    
15. Now we will test MFA/Multifactor Authentication. On your computer screen you will see two numbers for example on the example below it is "82", proceed to enter those numbers on your mobile phone when prompted by the Microsoft Authenticator App
    
    
16. Proceed on your computer to click the "Start using Microsoft 365 Business" blue button
    
17. On the "Install Microsoft 365" page shown proceed to click on the blue writing "Continue" on the bottom of the screen
    
18. On the "Add users and assign licenses" page scroll to the bottom again and click on the blue writing "Do this later"
    
19. On the "Protect your organization" page leave the check box [x] checked and proceed to click the blue writing at the bottom once more and click on "Protect Your Organization". This enables security defaults to stop spam, malware, phishing threats from impacting Outlook, Teams, SharePoint, and other Office 365 applications. It can take up to 24 hours to apply protection to all users. Go to the Microsoft 365 Defender portal to view or change this setting.
    
20. Finally! Setup is complete! its time to proceed to the Microsoft 365 Admin Center! Proceed to click the blue writing on the bottom of the page that says "Go to admin center"
    
21. Now that you're in the admin center, it's time to add your professional business domain address to the system! Proceed to part 2!

Part 2: Custom Domain Setup and Verification for Microsoft 365 Business Email

Using a custom domain (like yourcompany.com) instead of the default .onmicrosoft.com domain makes your business email look more professional and builds trust with clients and partners. Professional business email addresses like john@yourcompany.com are essential for credibility.

Before You Begin: Domain Prerequisites

Setting up a custom business email domain requires DNS configuration and domain verification through your domain registrar.

You Need:

1. A registered domain name (purchased from GoDaddy, Namecheap, Google Domains, etc.)
2. Access to your domain registrar account where you can modify DNS settings
3. Admin access to Microsoft 365 Admin Center

Don't Have a Domain Yet?
You can purchase a domain from GoDaddy, Namecheap, or any other domain registrar. Domains typically cost $10-20 per year for common extensions like .com, .net, or .org.***

Step 1: Navigate to the Domains section of the Microsoft 365 Admin Center for custom email domain setup

1. Click on the "...Show all" drop down link
   
2. Click the "Settings" dropdown menu
   
3. Proceed to Click on Domains
   
4. Click on the "+ Add Domain" button up top to start the process
   

Step 2: Add your domain

Proper DNS record configuration including MX records, SPF records, and DKIM setup ensures reliable business email delivery and email security.

1. From the "Add a domain" page you will enter your professional domain name for example we are using contosoexample.com in this guide. First click on the "Yes, add this domain now" radio button option and proceed to enter your professional domain name. Proceed to click the "Use this Domain" button on the bottom of the page once it completes it check to ensure the domain has not been previously used in ANY Microsoft 365 tenant.
   
2. Verify your own the entered custom email domain by adding a TXT record to your website. You may need your IT administrator to handle this part. If you need assistance, we offer Microsoft Consulting services. Give us a call at (619) 764-6150 to schedule an appointment with a consultant. Use the "Add aTXT record to the domain's DNS records" option and click on the "Continue" button.
   
3. Here you will receive the DNS TXT record you will need to add to your Domains DNS records at your domain registars page. (REMINDER: if you're not familiar with DNS we recommend consulting with your IT administrator or a consultant at this step) Copy and paste the records into your DNS and then wait about 15-30 minutes on average (sometimes this can take up to 48 hours) and then proceed to click on the blue "Verify" button.
   *NOTE* The following example image is of Adding TXT DNS Record to Namecheap for Domain Ownership Verification
   
4. Once verified, you will then move to the "How do you want to connect your domain?" section. This is more advanced DNS record editing, so you will have to add records to your domain's DNS. As in the previous step, we recommend contacting your IT administrator or Microsoft Consultant for these steps.
   Select "Add your own DNS records" and click the "Continue" button.
   
5. Next leave "Exchange and Exchange Online Protection" [x] checked and we recommend additionally under "Advanced options" to check the box [x] for "DomainKeys Identified Mail (DKIM)". Enabling this will help prevent email impersonation as well as reducing the amount of your emails ending up in peoples spam folders, so we highly recommend it.
6. Expand the dropdowns for all of the DNS records you will need to add For "Exchange and Exchange Online Protection"
   Expand > MX Records (1)
   Expand > CNAME Records (1)
   Expand > TXT Records (1)
   That will then show the DNS records you need to add for the "Exchange and Exchange Online Protection" services as seen below.
   
7. Next copy and paste the needed DNS records for "Exchange and Exchange Online Protection" into your domain's DNS rceords.
   ***DO NOT USE THE DNS RECORDS IN OUR SCREEN SHOTS THEY ARE FOR DEMONSTRATION PURPOSES ONLY!! YOU WILL NEED TO USE THE RECORDS PROVIDED BY MICROSOFT FOR YOUR SPECIFIC ACCOUNT!***
   
   
8. Verify you have "DomainKeys Identified Mail (DKIM) checked [x] and click the blue arrow > dropdown to show the last two DNS records we recommend adding for security.
   
   
9. Copy and paste the last two CNAME records into your domain's DNS records. The example shown will be on the Namecheap domain registrar.
   
   
10. Once those DNS records are in your Domain DNS records proceed to click on "Continue" to start the DNS Record Verification Process.
    
11. Once verification is complete you will be shown the "Domain setup is complete" page. This confirms the DNS records are in place to start using your custom professional business email domain for example we used contosoexample.com on this guide. Proceed to click the blue "Done" button. Your ready to head to "Part 3: Add your first email address".
    

Part 3: Create Your First Microsoft 365 Business Email Account and User

Now that you've verified all the prerequisites, you're ready to create a new user account and business email address in your Microsoft 365 environment.

Step 1: Access the Microsoft 365 Admin Center

1. Click on the "...Show all" drop down link
   
2. Navigate to "Users" in the left-hand menu
   
3. Click on "Active users"
   
   

Step 2: Complete the User Creation Process

The user creation wizard streamlines the process of adding business email accounts and assigning Microsoft 365 licenses to new employees. Once you're in the Active Users section:

1. Click the "+ Add a user" button at the top of the page
   
2. This will open the new user creation wizard for setting up a business email account proceed the fill out the form with the users information and be sure to select the correct email domain under the "Domains" dropdown selection box.
   
3. Once again verify the email address that is now displayed is the correct one your wish to use. Then roceed to click on "Next" to proceed to the next steps
   
   
   
4. Assign product licenses

   

5. No administrator access needed. Standard user account for email and business use. Click "Next"
   
6. Double check information and settings and proceed to click the blue "Finish adding" button
   
7. Email address has now been created Successfully. Make a note of the temporary password. Click "Send email" to send a greeting email for the new user on how to use their new account. Then proceed to click the blue "Close" button
   
8. User in list now may need to refersh
   
9. Verify license is correct only 1 license is intended. If not reduce the licenses in use by contacting Microsoft or your IT administrator to ensure billing is accurate.
   

✓ Congratulations! You've successfully created a new Microsoft 365 business email account!

Need Expert Assistance? Partner with TECHIT SERVICES

While setting up Microsoft 365 and creating business email accounts can be done following this guide, many businesses benefit from expert assistance—especially when it comes to:

• Initial subscription setup and planning
• Complex DNS configuration
• Email migration from other providers
• Advanced security configuration
• Ongoing management and optimization
• User training and support

Why Choose TECHIT SERVICES for Your Microsoft 365 Business Email Needs?

• Certified Microsoft Partners: As official Microsoft Partners, TECHIT SERVICES has the credentials and direct Microsoft support to provide you with top-tier service and solutions for business email.
• Over 15 Years of Experience: With more than 15 years working exclusively with the Microsoft 365 Cloud environment, TECHIT SERVICES has helped hundreds of businesses optimize their business email infrastructure.
• Domain and DNS Expertise: TECHIT SERVICES can handle all aspects of domain verification, DNS configuration, and business email routing setup, ensuring your email system works flawlessly from day one. No need to worry about MX records, SPF, DKIM, or DMARC—we handle it all.
• Migration Services: Moving from Gmail, GoDaddy Email, or another provider? TECHIT SERVICES can migrate all your existing emails, contacts, and calendars to Microsoft 365 without any data loss.
• Proactive Support: Don't wait for problems to arise. TECHIT SERVICES provides proactive monitoring, maintenance, and optimization to keep your Microsoft 365 business email environment running smoothly.

Whether you're setting up your first Microsoft 365 business email account or managing a complex enterprise environment with hundreds of users, TECHIT SERVICES can help you get the most out of your Microsoft 365 investment.

Contact TECHIT SERVICES Today for a Free Consultation!

Services We Offer:

• Microsoft 365 subscription setup and configuration
• Custom domain setup and DNS configuration
• Email migration from any provider
• Security and compliance configuration
• User training and onboarding
• Ongoing support and management

Conclusion

Creating a new Microsoft 365 business email account is a straightforward process when you follow the right steps. This comprehensive guide has walked you through:

✓ Setting up your Microsoft 365 Business subscription

✓Choosing the right plan and licenses

✓Adding and verifying your custom domain

✓Configuring all required DNS records (MX, CNAME, SPF, DKIM, DMARC)

✓Creating new business email user accounts

✓ Managing and troubleshooting business email accounts

Remember, while the business email account creation process is straightforward when you have this guide, maintaining a secure, optimized, and efficient Microsoft 365 environment requires ongoing attention and expertise. Many businesses find that partnering with experienced professionals like TECHIT SERVICES saves time, reduces errors, and ensures their business email system is configured for optimal performance and security.