Choose the proper pilot bearing for your router that will cut at the same thickness as the wood. A ball bearing pilot bit is suitable for cutting recessed edges, as it ensures accuracy with it location below the rabbet bit and it rides along the wood as you cut to ensure you don't cut too deep.
Insert a rabbet width in the same width into the router. Set the rabbet to cut 1/2 inch or 1/4 inch into the wood depending upon the overall thickness of the piece. A rabbet bit is designed specifically for cutting edges without the need for a guiding piece of wood or template.
Clamp the board to your workbench to hold it steady. Hold the router with both hands and run it along the edge of the board. You can rabbet the outer edge of the board or inside a frame with a handheld router with confidence, as the ball bearing pilot bit guides you with an accurate cut along the edges. You can also turn a handheld router to compensate for the inside of a frame.