Why isn't iCloud working on iPhone?

I have bought a iPhone 5S 32 gb from eBay. It came with iOS 7.1 and I did a Clean restore to iOS 8.1. Wiped the entire device. I set up my apple account, everything seemed to work fine. This is my first apple device other than the iPod. So I never made a iCloud account. When I try to sign up to iCloud it says that I'm not eligible and account limit reached how can I fix it. I really need to make an iCloud.

I'm running windows 8.1 on my laptop. With iTunes 64 bit. I tried everything nothing works. I downloaded iCloud on my pc too. But it says "this apple id is valid but not an iCloud account".

Tagged tv that's why

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