As I create new html docs, folders, etc, will I need to be the one setting permissions on each file/folder individually?
You only need to set permissions once. You create a folder on your site (e.g. call it /templates/) and upload it to your server, or just use the default folder at system/expressionengine/templates/. Set the permissions on it to 777.
Then go to Control Panel > Design > Templates > Template Manager and click the gray Global Template Preferences button at the top of the page. Toggle the preference Allow Templates to be Saved as Files? to Yes.
You can leave the Basepath to Template File Directory as is (to save the files in the default system/expressionengine directory - or change to suit, as long as the location can be accessed by EE). (Don’t locate it in your root folder, though, as people can access it there.)
Now ExpressionEngine knows where to save the templates, so you just have to go through and save them all as files. ExpressionEngine doesn’t automatically save all of your templates as files. You have to do this manually for each template in the system.
Control Panel > site template group > any template.
At the bottom of the page, click Save Template as File checkbox and then click Update.
The use your FTP client to pull a copy of the templates to your computer so you can edit them locally.
However, if you are on a Mac, I suggest you not use this save templates to file anyhow, as using Mountee is much better.