Windows 11 Local vs Microsoft Account: Which One Should You Use in 2025

So, you’ve got a shiny new Windows 11 laptop, and it’s asking you to sign in with a Microsoft account? When you set up a new Windows 11 PC or reinstall the OS, you have the option to use either a local account or a Microsoft account. Each type of account has its own set of features and benefits, and the choice depends on your specific needs and preferences. A Microsoft Account offers features like cloud integration, easier access to Microsoft services, and synchronization across devices. Local Accounts provide more privacy, reduce data sharing, and offer a greater sense of independence from Microsoft’s ecosystem. Let’s take a look at what each type of account is, how they work, and the key differences between Local Account vs. Microsoft Account in Windows 11.

What Is a Local Account in Windows 11?

A Local Account is the traditional user account that’s stored directly on your PC. It’s not connected to the internet or any Microsoft services by default. You’ll set up a username and password (or PIN) that only works on that specific computer. Local accounts are ideal for individuals who want more privacy and control over their data and do not want to sync information to the cloud.

Pros of a Local Account:

This account has multiple benefits, such as –

• It’s Secure: You can set up a complex password to log into your computer. No one without your permission will be able to access your account. It is a highly secure account that can’t be hacked as it operates offline.
• Privacy First: The settings saved in this account can’t be accessed remotely by anyone as they are locally stored on your computer only. Your settings stay private for your use only.
• Offline: To operate the local account, no internet connection is required as this account’s settings are stored on your local device already. Without an internet connection or any other kind of connection, you can easily log in to your local account.
• Simple Setup: Create a username, skip the password if you want, and you’re done. It’s quick and straightforward. No email or online verification required.

Cons of a Local Account:

• Limited Access to Microsoft Apps: Services like OneDrive, Microsoft Store, and Teams may require separate sign-ins.
• No Cloud Syncing: Your settings, files, and preferences won’t carry over to other devices.
• Less Integration: Features like Find My Device, Windows Backup, and seamless password reset won’t work without an online account.
• Security: Local accounts may not have the same security features as Microsoft accounts.

A local account is ideal if you prefer privacy, don’t use cloud services, or want a simple, minimal Windows experience without syncing or signing in online.

How to create a local account in Windows 11?

Creating a local user/administrator account on Windows 11 is a simple, easy process. You can do this with a few clicks by following the steps below.

• Open the Settings app using keyboard shortcut Windows + I.
• Click on Accounts, then select other users.
• Select Add someone else to this PC.
• Next, select I don’t have this person’s sign-in information,

• On the next page, select Add a user without a Microsoft account.

• Enter a user name, password, password hint or choose security questions, and then select Next.

• Select the account owner’s name, then select Change account type.
• Under Account type, select Administrator and OK.

What Is a Microsoft Account?

A Microsoft Account is a cloud-based login that connects your Windows 11 PC to Microsoft’s ecosystem. It uses your email (e.g., Outlook.com, Hotmail, or even Gmail) to sign you into Windows and various Microsoft services like OneDrive, Office, and Xbox. It’s essentially a single login that allows you to use services like Outlook.com, OneDrive, Xbox Live, the Microsoft Store, and more. It can also be used to track your subscriptions, order history, and family safety settings.

Pros of a Microsoft Account:

Microsoft Store – With a Microsoft account, you can download different apps from the Microsoft Store to your computer. Microsoft Store works similarly to the Google Play Store or Apple App Store. On the Microsoft Store, a wide range of games, entertainment, utility and other categories of apps are available. Some of the apps are free, and some are paid, which you can easily download on your desktop computer.

Cloud Storage – Microsoft account also offers free cloud storage of 5 GB on OneDrive. You can easily save your important files on OneDrive and access your files from any other device at any time. You can even directly share files with your friends and family using cloud storage. OneDrive also provides offline editing tool to make changes in the file quickly.

Account Sync – In the Microsoft account, your account settings are stored over the cloud, which means your account settings can be easily synced. If you open up your Microsoft account on any other device, then your preferred account settings will be automatically transferred to the new device. Microsoft account enables you to sync your profiles, passwords and Windows store apps with just one click. It can also be easily reset your password via email or phone verification.

Cons of a Microsoft Account:

• Privacy Concerns: Some users are uncomfortable with data syncing and activity tracking.
• Internet Dependency: Initial setup and some features require a stable internet connection.
• More Complex Setup: You need to verify your identity and manage extra credentials.

A Microsoft Account is ideal for users who are integrated into Microsoft’s ecosystem and want a seamless experience across multiple Windows devices.

Create a new Microsoft account for Windows 10

If you don’t have an account yet, you can create one during the sign-in process.

• Go to Microsoft account and select Sign in.
• Type the email, phone number, and sign-in that you use for other services (Outlook, Office, etc.), then select Next.
• If you don’t have a Microsoft account, you can select No account. Create one!.
• Microsoft recommends using an email you already have and use regularly.
• Type your password and select the Keep me signed in box if you want to go straight into your account next time, then select Sign in.

Key Differences Between Local and Microsoft Accounts

Overall, Local accounts are tied to a single device and are not synced across multiple devices, while Microsoft accounts can be used on multiple devices and provide access to Microsoft online services.

Local Account:

• Stored only on your device, no cloud syncing.
• Offers greater privacy since data isn’t sent to Microsoft.
• No internet required for login, ideal for offline use.
• Limited access to Microsoft services (e.g., OneDrive, Microsoft Store, Copilot).
• Can be passwordless for simplicity but lacks recovery options

Microsoft Account:

• Syncs settings, files, and apps across devices via the cloud.
• Required for full access to Microsoft Store, OneDrive, Copilot, and Microsoft 365.
• Needs internet for initial login and some features.
• Offers account recovery but raises privacy concerns due to data collection.
• Supports features like Passkeys and Cortana

To better understand which account type is right for you, let’s compare the two across several key areas:

Why Microsoft Pushes Online Accounts

Microsoft has been making it trickier to set up Windows 11 with a local account, but why? They argue it’s about “security and user experience,” with features like Copilot and OneDrive relying on cloud connectivity. But many users feel it’s about data collection and tying you to their ecosystem.

Can we Have Both?

Yes! You can mix and match. Set up a local account for daily use and add a Microsoft account for specific apps like OneDrive or the Microsoft Store. Or start with a Microsoft account and switch to a local one later. Here’s how:

• Switch to a Local Account: Go to Settings > Accounts > Your Info > Sign in with a local account instead. Follow the prompts to create a username and password.

• Add a Microsoft Account: In Settings > Accounts > Other users, add a Microsoft account for specific tasks without changing your main login.

How to Set up Windows 11 without a Microsoft account?

Microsoft’s setup process pushes hard for an online account, but there’s a new trick to go local:

• During setup, when prompted for a Microsoft account, press Shift+F10 to open a command prompt.
• Type start ms-cxh:localonly and hit Enter.
• A window will pop up letting you create a local account. Fill in your details, and you’re set

Note: Microsoft may patch this in future updates, so check online for the latest workarounds if it doesn’t work.

Which Should You Choose?

• Pick a Local Account If: You value privacy, work offline often, or only use one PC and don’t need Microsoft’s cloud services.
• Pick a Microsoft Account If: You use OneDrive, Microsoft 365, or Copilot, switch between devices, or want a streamlined experience with Microsoft’s ecosystem.
• Try Both If: You want the best of both worlds—use a local account for privacy and sign into Microsoft services as needed.

Ultimately, the choice between a local account and a Microsoft account depends on your specific needs and preferences. If you value convenience and the ability to sync across devices, a Microsoft account is the way to go. If you prioritize privacy and simplicity, a local account might be more suitable.