Setting up a Windows 11 PC requires creating a user account, with the Windows Setup program encouraging the use of a Microsoft account. A local account can still be established, though it is less promoted. Local accounts store credentials on the device, while Microsoft accounts use an email and password managed on Microsoft's servers. Local accounts are straightforward but can lead to frustration if passwords are forgotten. Microsoft accounts offer benefits like automatic encryption, easy restoration of activation, and synchronization of settings across devices. Privacy concerns regarding Microsoft accounts are often overstated, as data collection is tied to machine ID rather than account type.
In Windows 11 Home edition, a temporary Microsoft account can be created during setup to later switch to a local account. In Windows 11 Pro edition, selecting the work option allows bypassing the Microsoft account requirement, with options to create a local account through domain joining. Third-party tools can assist in setting up a local account.