You don`t need a windows live account in either 8 or 8.1.
When you start these things for the first time never attach it to the internet do that later after you have your user and admin accounts setup and also your account security. Then when your in as a normal user then attach it.
If its not attached it defaults to setting up a local account.
After starting 8 you will have to go through 8-9 updates and reboots before 8.1 will show up to be able to upgrade. Again don`t attach it to the internet during the setup procedure. Once finished then setup internet.