The answer given by @S.Sengupta is incorrect. You can't upgrade from Windows Home to Windows Business for free with just a Microsoft 365 Business Premium license. You have to first pay for a Windows Pro upgrade license. Once the computer is running Windows Pro, you can then join it to Azure AD and sign in with your Microsoft account that has the Microsoft 365 Business Premium license assigned to it. This will change the SKU from Windows Pro to Windows Business.
Windows Business requires the computer to first have Windows Pro as a prerequisite, because Windows Business essentially is just Windows Pro with a set of cloud services and device management capabilities added to it.
For this reason, you can't use an account with a Microsoft 365 Business Premium license on a computer running Window Home, because Windows Home devices can't be Azure AD-joined.