Personal Microsoft account vs. Microsoft 365 Business account
Having both a Microsoft personal account and a business account can be confusing because they often look similar but behave differently. Here’s how to tell them apart.
Before we set you up on Microsoft 365 Business, you may have created a Microsoft Personal Account to license the Microsoft Office suite. Microsoft allows any email address, even a corporate domain, for a personal account. Now you have two separate accounts — one for the “home user system” and one for the business system, with the same email (username). Confusing!
If that is the case, when you log into 365 Business, you may get prompted to choose between a “Work or School Account” and a “Personal Account” when signing in. Windows may also prompt you to sign in to your personal Microsoft Account — you don’t need to do this.
- Used for consumer services like Outlook.com, Xbox, Skype, OneDrive (personal)
- Typically created with a personal email (e.g. Gmail, Outlook)
- Managed by you personally
- Used for organisational services like Microsoft 365 Business, Teams, SharePoint, OneDrive for Business
- Created and managed by your company or school
- Often ends in a company domain (e.g. yourname@company.com)
Same email address for both
You might use the same email address for both accounts — which is why Microsoft prompts you to choose between “Work or School Account” and “Personal Account” when signing in.
Apps behave differently
Some apps like Teams or OneDrive behave differently depending on which account you’re signed in with — leading to confusion about which files are where.