License & Subscription Issues

How to Set Up Microsoft 365 Business Basic With a GoDaddy Domain

Maira Mehtab Sep 27, 2026 868 views

Question details

A business owner needs to create and manage a Microsoft 365 tenant using a GoDaddy domain and assign the single purchased Business Basic license to a different user, without requiring an additional license for the admin account.

Product: Microsoft 365 Business Basic
Device & OS: not provided
Scenario: Setting up a new Microsoft 365 tenant with a custom domain and distributing limited licenses to end-users.
Observed behavior: The administrator wants to configure the tenant and assign the only available license to another user while maintaining free administrative access.

Before you start

Ensure you have your GoDaddy login credentials handy, as you will need to authorize Microsoft to automatically update your domain's DNS records during the setup process.

Solution 1Recommended

Creating the Tenant and Assigning the License

Use your own email to set up the administrative tenant, connect the GoDaddy domain, and allocate the purchased license to the designated user.

Microsoft 365 allows you to create and manage a tenant as an administrator without requiring a paid license for yourself, provided you only use the account for administrative tasks and do not need access to services like Exchange email, OneDrive, or SharePoint.

Create the Microsoft 365 Tenant

Sign up for Microsoft 365 Business Basic using your own email address. This initial account automatically becomes the Global Administrator for the tenant.

Connect the GoDaddy Domain

Navigate to the Microsoft 365 Admin Center, go to 'Settings', then 'Domains', and click 'Add domain'. Enter your GoDaddy domain name, follow the prompts to sign in to GoDaddy, and allow Microsoft to configure your DNS records automatically.

Create the User Account

In the Admin Center, navigate to 'Users' > 'Active users' and click 'Add a user'. Enter the required details for the person who will be utilizing the Business Basic license.

Assign the License

During the user creation process, or by navigating to the 'Licenses and apps' tab of their user profile later, check the box to assign the purchased Microsoft 365 Business Basic license to them.

Admin Licensing Requirements: Your administrative account does not need a second license. You only need to purchase additional licenses if you or other administrators also need to use Microsoft 365 software and services.

Free Microsoft Office alternative

Need Powerful Office Software Without the Subscription Fees?

If managing Microsoft 365 tenants and recurring license subscriptions feels overly complex or expensive, consider WPS Office. It provides a complete, lightweight office suite that is fully compatible with Microsoft Word, Excel, and PowerPoint formats, requiring no complicated admin centers or recurring fees.

1. Download WPS Office: Visit the official WPS website and download the free WPS Office installer for your operating system.
2. Install the Suite: Run the downloaded setup file and follow the straightforward on-screen instructions to install the software on your device.
3. Open and Edit Files: Launch WPS Office to instantly open, edit, and save your existing Microsoft Office documents without worrying about subscription licenses.

Fully compatible with Microsoft Office formats (.docx, .xlsx, .pptx)No complex tenant management or recurring license assignments requiredLightweight application that runs smoothly on Windows, Mac, and LinuxIncludes powerful built-in PDF editing and conversion tools

microsoft office alternative - wps office

Frequently Asked Questions

Do I need to buy two Microsoft 365 licenses if I am the admin but someone else is the user?

No. You can create and manage the Microsoft 365 tenant using your email address as an unassigned administrator. You only need to purchase one license for the actual user, unless you also require access to Microsoft 365 services for yourself.

How do I get support if my GoDaddy domain won't connect to Microsoft 365?

You can open a service request directly within the Microsoft 365 Admin Center. Navigate to the 'Support' or 'Help & support' tab on the bottom right of the admin dashboard to contact Microsoft support.

Can I transfer an existing GoDaddy email to my new Microsoft 365 tenant?

Yes, but this requires an email migration process. You will need to back up your existing emails, connect your domain to Microsoft 365, set up the new mailboxes, and then migrate the historical data into the new accounts.

Login & Account Issues