The main advantage of using a Microsoft account, is that Windows Store and Store apps, can automatically sign into your Microsoft Account, and will not prompt for your credentials. On the other hand a Local account, is any offline account that can be used only to Sign-in in Windows 10 or Windows 8.1. A Microsoft account, is any online account (e-mail address and password) that is registered with Microsoft and can be used to sign-in in Windows 10 or 8.1 OS and to install apps from the Windows Store.
At this stage, you can either setup a Microsoft Account or a Local Account. As you may know, during Windows 10 or 8.1 installation, Windows asks you to create a computer account (user).
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