diff --git a/incorporealcms/__init__.py b/incorporealcms/__init__.py
new file mode 100644
index 0000000..c4820cf
--- /dev/null
+++ b/incorporealcms/__init__.py
@@ -0,0 +1,21 @@
+"""create_app application factory function and similar things."""
+import os
+
+from flask import Flask
+
+
+def create_app(test_config=None):
+    app = Flask(__name__, instance_relative_config=True)
+
+    # if it doesn't already exist, create the instance folder
+    os.makedirs(app.instance_path, exist_ok=True)
+
+    if test_config is None:
+        # load defaults from config provided with the application
+        app.config.from_object('incorporealcms.config.Config')
+        # load specific instance configurations
+        app.config.from_pyfile('config.py', silent=True)
+    else:
+        app.config.from_mapping(test_config)
+
+    return app
diff --git a/incorporealcms/config.py b/incorporealcms/config.py
new file mode 100644
index 0000000..73776eb
--- /dev/null
+++ b/incorporealcms/config.py
@@ -0,0 +1,11 @@
+"""Default configuration."""
+
+
+class Config(object):
+    """Represent the default configuration.
+
+    Reminder: this should be overwritten in the instance config.py, not here!
+    """
+
+    DEBUG = False
+    TESTING = False