A local account is an account that lets you sign on to only one PC. A local account is helpful if you do not want to be connected to the cloud all the time, or do not want to use a password or pin for the machine, and do not want to sync multiple machines.

Here is how to create a Windows 8.1 local account:

1. Go to Settings, and click Change PC settings.
2. Select  Accounts,  and click Other accounts.
3. From the Manage other accounts option, select Add an account.  A new screen opens, with the question How will the person sign in?
4. Select Sign in without a Microsoft account (not recommended).
5. From the Add a user screen, select the Local account option. A new Add a user screen opens.
6. Enter a user name for the new account in the User name field.
7. If you want to add a password, enter a password in the Password field, and again on the Reenter password field. Enter a word or phrase that will help you remember the password should you forget it, in the Password hint box.
8. Click Finish.

Keep in mind that when you are installing Windows 8.1, the system will not let you finish the installation process without an online Microsoft account. You do not have the option of creating a local account at this stage. Once you have installed Windows 8.1, only then you can create a local account.

Other caveats. If you create a local account, and use multiple computers, you will not be able to sync the machines. If you want to create local accounts for all your Windows computers, you will need to create a separate local account for each one of them.

[Image courtesy: Microsoft]