Re: do i need to set up an icloud account in order for my phone to work properly
Welcome to iMore!
If disabling and re-enabling iMessage in Settings does not work then you'll need to contact your cell phone carrier. There's no need to disable it unless you have no friends/family with an iMessage capable device.
If you have an Apple ID with a password, then you already have an iCloud account. Just sign in using those same credentials. If you want to be able to make backups of your phone, contacts, apps, etc. for emergencies then you should sign in to iCloud on your iPhone. Should someone steal your phone, you'll need to sign in to iCloud from a PC to locate and/or wipe the phone.
Signing in to iCloud is highly recommended in order to take advantage of those free and invaluable features.