Explore user account types
There are three primary types of accounts used to sign in a Windows client PC, which include:
- Local Account
- Microsoft Account
- Domain Account
When installing or starting up Windows client for the first time, you will make a choice between the use of a domain, local, or Microsoft Account.
Local accounts
A local user account resides on the local device only. It does not allow a user to access resources on other Windows computers. Typically, you use local user accounts for workgroup environments in which you have networked only a few computers, and in which users typically work with resources attached to their own devices.
Microsoft accounts
A Microsoft Account (formerly Windows Live ID) enables a user to have easier access to Microsoft’s services. If you have ever used services such as Xbox Live, Hotmail, Outlook.com, OneDrive, or Windows Messenger, you already have a Microsoft Account. Microsoft has combined all their services together, which allows a user to access them with a single account. Just one email address and password are used for all these services.
Domain accounts
Domains are used in organizations. Domain accounts enable users to access other resources that are also in the domain, such as other clients, servers, printers, and so on, using a service called Active Directory. One major benefit of Domain accounts is that they're centrally managed. Instead of creating accounts and setting passwords and permissions for each user on each device, a single user (or computer) domain account is created and used to grant access.
Which Account Type Should You Choose?
Organizations typically use Active Directory, and thus, Active Directory or Microsoft Entra accounts would be used. For home or personal use, a Microsoft Account offers many features that a local account does not. However, If you don’t need Microsoft Store apps, or only have one computer and don’t need access to your data anywhere else, then a local account will be sufficient. A local account will sign in to Windows and provide the user with their own space on the PC. If you’re interested in many of the features that Windows has to offer though, then users need a Microsoft Account to take full advantage of them.