The phone system provider offered me either local numbers or toll free numbers. Which should I get and why?

you will get a local number either way (unless it is VoIP)

all toll free numbers are "virtual numbers" they can not be assigned to a cable/pair, only a local number can be assigned to a cable/pair..

with a toll free number you would pay a small monthly fee for the toll free number and pay for all incoming calls on a per minute basis... and if you choose to accept toll free calls from payphones, those calls will cost even more..

if you are a business you may want to consider having a toll free number - especially if you do business nationwide... if your business is mostly, or completely local than a toll free number may not add much value to your business...

for residential... i would not bother with a toll free number..

toll free numbers are losing there value for businesses as well - now that most people have free domestic long distance i do not see the point for a business to continue to maintain a toll free number, where they have to pay per minute for incoming calls... the only benefit that i can see with toll free numbers for businesses are vanity numbers like 1-800-Your-Name ... vanity numbers can increase brand awareness and repeat customers...

Toll free numbers are free to call for everyone.

If they are trying to make your home number an 800 number, they are very expensive.

Your local number is the one to pick and should be under $30 with all the calling features.