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Local LLMs for business: models, hardware and setup.

Short answer

A local LLM is an AI language model that runs on your own computer instead of a vendor’s cloud. Businesses use them when files are confidential or per-seat AI gets expensive. Memory sets the limit: an 8-billion-parameter model at 4-bit is about a 5GB download and runs on 16GB; a 70-billion one is 43GB and needs 64GB.

Best local LLMs by memory (November 2026)

Popular open-weight models in the Ollama library, with download sizes for the default 4-bit builds. Leave several GB free for the operating system and the model’s working memory.

Your machine’s memoryModels that fit comfortablyDownload sizes
16GBllama3.1:8b, qwen3:8b4.9GB, 5.2GB
24GBgemma3:12b, qwen3:14b8.2GB, 9.3GB
32GBgpt-oss:20b, gemma3:27b (tight)14GB, 17GB
48GBqwen3:30b, qwen3:32b19GB, 20GB
64GBllama3.1:70b43GB

Sizes from ollama.com/library, November 13, 2026. Which models fit is our guidance; longer documents need more headroom.

Tools to run a local LLM

ToolWhat it isGood for
OllamaModel server with a command line and local APIRunning models as an always-on service
LM StudioDesktop app with a model browserTrying models on one computer
MLXApple’s machine-learning framework for Apple siliconRunning models efficiently on Macs
Open WebUISelf-hosted chat interfaceGiving staff a ChatGPT-style window
AnythingLLMDesktop and server app for chatting with documentsDocument Q&A
vLLMHigh-throughput inference serverServing many users on GPU servers

What businesses use local LLMs for

Drafting

Letters and replies from your templates.

Summaries

Long PDFs and transcripts condensed.

Document search

Questions answered from your own folders, with sources.

Inbox triage

Sorting mail and drafting replies for approval.

DIY or managed?

Do it yourselfManaged box (AdminOnsite)
HardwareBuy itIncluded; yours after 24 months
SetupInstall model server, chat app, document index, permissionsConfigured on your templates and folders
Updates and model changesYouUs, remotely, with logged access
Email and file connectionsYou build themSet up for drafting, triage and follow-ups
CostHardware plus your time$249–$699 a month plus setup

DIY makes sense if you have someone technical with time to maintain it. If you don’t, the time is the real cost.

Questions

What is the best local LLM?

The best one that fits your memory with room to spare. On 24–32GB, models in the 12–20-billion-parameter range are a good balance; on 64GB, 70-billion-parameter models at 4-bit fit.

Is a local LLM free?

Many open-weight models are free to download under their licenses. You pay in hardware and the time to run them.

Can a local LLM read my documents?

Yes, through retrieval: your folders are indexed, and the relevant passages are handed to the model with your question.

How do I run an LLM locally?

Install a model server such as Ollama or LM Studio, download a model that fits your memory, and add a chat interface such as Open WebUI.

Now booking founding offices

See it on your own files

Tell us about your office. We’ll set up a demo with documents like yours, so you can judge the drafts and summaries yourself.

  • Your kind of documentsWe demo on sample files from your field: letters, workpapers or policies, not a canned script.
  • Straight answers on priceFlat monthly plans for the whole office. No seats, no credits.
  • Honest about fitIf cloud AI is the better choice for you, we’ll say so.

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