# Microsoft 365 Business Basic vs Standard vs Premium > For the full documentation index, see https://250highstreet.com/llms.txt > Compare Microsoft 365 Business Basic, Standard and Premium for a small team: the 300-seat cap, what Premium adds, what to check on price, and how to choose a plan. Standard covers business email, Teams, cloud storage and premium Office apps. Premium adds security tools on top of Standard. All three plans share one 300-seat limit. ## What is the main difference between the three plans? Microsoft describes Business Standard as the plan with the apps and services for remote work: Microsoft Teams, secure cloud storage, business email, and premium Office applications across devices. Business Premium includes everything in Business Standard, plus Microsoft Defender for Business and Microsoft Defender for Office 365 Plan 1. That gives you stronger threat protection, endpoint detection and response, and vulnerability management. Business Basic is the entry plan. It has web and mobile versions of Word, Excel, PowerPoint and Outlook, plus business email and Teams, but no desktop apps. Standard and Premium add the desktop apps on up to 5 PCs or Macs, 5 tablets and 5 phones per user. ## How many people can use these plans? The Business plans are made for organizations with up to 300 users. The cap is shared. You can provision 300 seats in total across Basic, Standard and Premium. Microsoft gives an example. If you hold 250 Premium seats, you can add only 50 more across the whole family. Larger organizations should look at Microsoft 365 for enterprise plans. ## What does Premium add that Standard does not? Microsoft notes that the security and management benefits apply only to users with devices managed under a Premium subscription. It suggests Premium for all users for the best protection. 1. Microsoft Defender for Business. 2. Microsoft Defender for Office 365 Plan 1. 3. Next-generation protection and endpoint detection and response. 4. Threat and vulnerability management. ## What does each plan cost? On Microsoft's US plan pages as of October 30, 2026, Business Basic is \$7.00 per user per month paid yearly, or \$8.40 on a monthly subscription. Business Standard is \$14.00 yearly or \$16.80 monthly. Business Premium is \$22.00 yearly or \$26.40 monthly. Microsoft also sells Standard and Premium with Copilot built in, at \$23.50 and \$32.00 per user per month paid yearly. Prices change, so confirm on Microsoft's plan page before you buy. ## How do you choose for a small team? This is advice, not a Microsoft rule. A mix is allowed inside the 300 seats, but Microsoft recommends Premium for everyone if you use it at all. 1. Count your users. Stay under the 300-seat cap. 2. Ask whether staff need the desktop Office apps. Basic has web and mobile apps only. 3. Ask whether you handle client data, payments or health records. If yes, look hard at Premium. 4. Ask who manages your devices. Premium helps most when devices are covered by it. ## Does the plan affect SharePoint and Power Automate? SharePoint lists work within your Microsoft 365 plan, and flows have their own license rules. Our guide on the [Power Automate license for a small team](/guides/power-automate-license-small-team/) covers that side. If you are building a tracker, the plan matters less than the permissions. See [sharing a list with external users](/guides/share-sharepoint-list-with-external-users/) and [how many items a list can hold](/guides/how-many-items-can-a-sharepoint-list-hold/). ## Can you switch plans later? Microsoft says you can switch from a qualifying plan to Business Premium, and the monthly charge might go up or down. Check your admin center for the plans open to you. ## Want help with this? If you would rather have someone build a tracker on top of the plan you pick for you, I can help. I am Al Davies at 250 High Street LLC, and I build SharePoint and Power Automate trackers for small teams, fully remote. A tracker is \$5,000 and takes 2 weeks, and the first call is free. You can see past work in the [portfolio](https://250highstreet.com/portfolio/). ## FAQ ### What is the user limit for Microsoft 365 Business plans? Up to 300 seats in total across Business Basic, Standard and Premium. ### Does Business Premium include everything in Standard? Yes. Microsoft says it adds Defender for Business and Defender for Office 365 Plan 1. ### What if we grow past 300 users? Microsoft says to consider Microsoft 365 for enterprise plans. ## Sources - [Microsoft Learn: Microsoft 365 Business Premium frequently asked questions](https://learn.microsoft.com/en-us/microsoft-365/business-premium/microsoft-365-business-faqs) - [Microsoft: Microsoft 365 Business Basic](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-business-basic) - [Microsoft: Microsoft 365 Business Standard](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-business-standard) - [Microsoft: Microsoft 365 Business Premium](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-business-premium) - [Microsoft: Microsoft 365 plans and pricing](https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-plans-and-pricing) ## Related guides - [Which Power Automate license does a small team need?](/guides/power-automate-license-small-team/) - [Share a SharePoint list with a client outside your company](/guides/share-sharepoint-list-with-external-users/) - [How Many Items Can a SharePoint List Hold?](/guides/how-many-items-can-a-sharepoint-list-hold/) Source: https://250highstreet.com/guides/microsoft-365-business-basic-vs-standard-vs-premium/