How Many Microsoft 365 Business Basic Licenses Do Six Employees Need?
Question details
The user needs to determine the correct number of Microsoft 365 Business Basic licenses to purchase for an organization with six employees and understand how to configure a custom email domain.
- Product
- Microsoft 365 Business Basic
- Device & OS
- not provided
- Scenario
- Purchasing a new business subscription for a small team and setting up customized professional email addresses.
- Observed behavior
- Finding the exact licensing requirements per user and the standard procedure for linking a custom domain to Microsoft 365 services.
Before proceeding, ensure you have administrative access to your company's domain registrar to configure DNS records, and confirm that your team is comfortable using web-only Office applications.
Purchase and Assign Individual Licenses
Microsoft requires a dedicated license for each named user, meaning a team of six employees will require six individual licenses.
Microsoft 365 Business licenses are tied to specific named users rather than devices. Sharing a single account among multiple employees violates licensing terms and can cause file syncing or security issues.
Navigate to the Microsoft 365 Admin Center, select your billing or purchase services section, and buy six Microsoft 365 Business Basic licenses.
Go to the 'Users' menu, select 'Active users', and click 'Add a user' to create an individual profile for each of your six employees.
During the account creation process, check the box to assign a Microsoft 365 Business Basic license to each new user account.
Set Up a Custom Email Domain
Configure your organization's custom domain to provide professional email addresses for your six employees.
Need Desktop Apps? Try WPS Office as a Cost-Effective Alternative
Microsoft 365 Business Basic only offers web-based applications. If your team needs powerful desktop software without upgrading to an expensive premium subscription, WPS Office provides a fully featured, lightweight desktop suite that is highly compatible with Microsoft formats.
- 1. Download the software: Visit the official WPS website and download the free installation package for your operating system.
- 2. Install and launch: Run the installer, follow the on-screen prompts, and launch the application suite.
- 3. Open your files: Simply double-click your existing Microsoft Office files to seamlessly open and edit them in WPS Office.
Frequently Asked Questions
Can multiple employees share one Microsoft 365 Business Basic license?
No. Microsoft's licensing terms require each named user to have their own dedicated account and license. Sharing accounts poses significant security risks and complicates file collaboration and version history tracking.
Does Microsoft 365 Business Basic include desktop applications?
No, the Business Basic tier only includes web and mobile versions of Office applications. To use fully installable desktop versions of Word, Excel, and PowerPoint, you would need to upgrade to Business Standard or Business Premium.
What happens if I hire a seventh employee later?
You can easily scale your subscription at any time. Simply log into the Microsoft 365 Admin Center, purchase one additional Business Basic license, and assign it to the new employee's newly created account.
Do I need an IT professional to set up my custom domain?
While the Microsoft 365 Admin Center provides a guided setup wizard for adding DNS and MX records, migrating existing emails from an old host can be complex. If you are not comfortable modifying DNS settings, consulting an IT professional or Microsoft reseller is recommended.
