Do you need separate accounts if 2 people are playing Xbox?

Hi, I hope you're doing great out there. I am an Independent advisor and I am here to help you with your concern.

Yes, Adam. You may need to have a separate account if you will be playing a two-player game.

You can create a guest account but it would be best to just create a profile itself.

the most you can have is as many as the console will allow. 4 players can play online with 4 separate accounts if there were more people wanting to play on there own. but more than 2 cannot play campaign on one xbox together.

set that console as home Xbox and you wont need internet to play your digital games, all my consoles do it from ps4 to Nintendo, id rather have a digital download that wont fail me unlike discs that can end up damaged or the disc drive that always seems
to eventually fail. Also at least with digital downloads you can play from 2 consoles one just needs to be your home Xbox and one needs internet and you to be on your account, so you don't have to buy 2 copies of the same game but if its for 2 separate accounts
you do or you will be violating the terms and conditions, however any account may play your games on the Xbox that is set as home Xbox. hope this helps

Are they on 2 separate consoles? If so, each account needs to have an active Xbox Live Gold Membership.

If it is on the same console, you need to create an account for each of your daughters.

You can't sign into 2 different Xbox Ones with the same console. You would each need your own account (if you don't have one already) and then you would each be able to sign into each console and play separate games.