You also have several templates to choose from with Open Office software, but Microsoft Word provides a wider selection. However, if you do find a template that seems good enough and you'd like to customize it, go to Wordlabel.com to download the file. To open it, right click Open With and then select the software. You can then modify it however you want.
But first, let's learn how to create a business letterhead in Word. You only need two things: Microsoft Word and a ready graphic, preferably not wider than 5 inches and higher than 2. In other words, not larger than 5x2 inches. This is, of course, ideal but not necessarily set in stone. Let's begin. Fire up your MS Word. I'm using MS Word 2003 and you might have a different version, but I believe there is not much difference.