Note: you will need to use a Domain Admin account to setup the AD FS server
Open AD FS 2.0 Management snap-in from Start -> Administrative Tools -> AD FS 2.0 Management
On the Specify a Service Account page, click Browse button, locate the domain account that will be used as the service account for federation server farm and click OK
Type the password for the service account and click Next
On the Ready to Apply Settings page click Next
Once the configuration is done, on the Configuration Results page, review the results and click Close
Now that the AD FS is configured on your server you need to verify that the federation server is operational.To verify that the federation server is operational:
Click Start, point to Administrative Tools, and then click Event Viewer.
In the Event Viewer navigate to Applications and Services Logs -> AD FS 2.0 -> Admin
Look for event ID 100 which indicates that the federation server is configured properly
Now that you have configured your AD FS, the next step for Single Sign-on is to install and configure the Microsoft Online Services Module for Windows PowerShell.