Wondering how to set up Microsoft Entra ID Free Tier to manage users, devices, and access for your small business? This step-by-step guide shows you exactly how to get started using Windows 10 or 11 Pro devices and cloud identity. No Microsoft 365 subscription required.
This guide also highlights a common administrator login issue you’ll want to avoid, and explains the best practices for secure user and device management.
Step 1: Create Your Azure Account
- Visit the Azure free trial page
- Sign up with a Microsoft Account (e.g.
yourname@outlook.com) - Verify your phone number and add payment method details (you won’t be charged)
Step 2: Avoid This Common Admin Mistake
The Microsoft Account used to create Azure becomes a Global Administrator in your Entra ID tenant. However, it’s a federated identity, which cannot be used to join Windows devices to Entra ID.
If you try to join a device with this account, you may see this error in the sign-in logs:
- Error Code: 50126
- Source: Microsoft Authentication Broker
- Reason: Incorrect username or password (even when entered correctly)
Solution: After setup, create a native Entra ID user (e.g. admin@yourdomain.co.uk) and assign it the Global Administrator role. Use this account for device joins and ongoing management.
Step 3: Access Microsoft Entra ID
- Login to the Azure Portal
- Open "Microsoft Entra ID" from the left-hand menu or search bar
Step 4: Add and Verify Your Domain
- Go to Entra ID > Custom domain names
- Click "Add custom domain" and enter your business domain (e.g.
yourcompany.co.uk) - Add the required TXT record to your DNS provider
- Click "Verify" once the record has propagated
Step 5: Create Users and Groups
Create Users
- Go to Entra ID > Users > + New user
- Example:
jdoe@yourdomain.co.uk, with a temporary password
Create Groups
- Go to Entra ID > Groups > + New group
- Example groups:
MarketingTeam,FinanceUsers,ITAdmins
Step 6: Join Windows Devices to Microsoft Entra ID
- On the device, go to Settings > Accounts > Access work or school > Connect
- Select "Join this device to Azure Active Directory"
- Enter credentials for a native Entra ID user
- Restart the device to complete the join
Best Practice: Don’t Use Global Admin for Day-to-Day Work
- Reserve Global Administrator access for initial setup and emergencies
- Use the Device Administrator role for joining devices
- Allow users to join their own devices, using policy controls where appropriate
What’s Included in Microsoft Entra ID Free Tier?
| Feature | Included? |
|---|---|
| User and Group Management | Yes |
| Windows 10/11 Device Join | Yes |
| Multi-Factor Authentication (Basic) | Yes |
| Single Sign-On (up to 10 SaaS apps) | Yes |
| Conditional Access / Custom Branding | No (Requires Entra ID P1) |
Bonus: SSO Add-On Guide
Want to connect apps like Google Workspace, Dropbox, or Zoho to Microsoft Entra ID?
You can download our full Microsoft Entra ID Setup & SSO Guide (PDF) <-- Here.
