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Local vs. toll-free: What phone number should I get for my business?

Local vs toll free

Toll-free phone numbers are everywhere: on bank commercials, customer service hotlines, and big brand websites. But are they something only large businesses need? Or does your small business deserve a spot in that league, too?

We’ll break down the pros and cons of toll-free vs. local numbers and show how both can help grow your business.

What’s the difference between local vs toll-free numbers?

To figure out which type of phone number is right for your business, it helps to understand how they work. Let’s start with local numbers.

What are local numbers? 

Local numbers are associated with a specific location and immediately tell customers where you’re based. So, if you’re in San Francisco, CA, your local area code would likely be 415 or 628. New York City might have a 212 or 646 area code, while a company in Austin, Texas, might use 512

Let’s explore the pros and cons of using local phone numbers.

Pros and cons of local numbers

Pros

  • Local calls are more likely to be answered
  • Enhances local presence and strengthens brand awareness in a specific region
  • Builds trust by giving the impression of being “closer to home” 

Cons

  • Clients may incur fees for long-distance calls
  • Limited to a specific region
  • Businesses running in several regions may need multiple local numbers

What are toll-free numbers?

With a toll-free number, the caller won’t know your town or city. And, as the name suggests, fees are not charged to the caller. Toll-free numbers have three-digit toll-free codes, such as 800, 844, 855, or 866. Let’s break down the pros and cons of using toll-free numbers.

Pros and cons of toll-free numbers

Pros

  • Makes the business look larger and more established
  • Helps build a global reputation 
  • No fees for national callers

Cons

  • Outbound calls from toll-free numbers are more likely to be ignored as spam or telemarketing
  • Less focused on specific target regions, which may reduce local appeal
  • Often seen as better suited for larger organizations

How customers view local vs toll-free numbers

Let’s take a look at how you can expect customers to see your business if you call them on a local or toll-free phone number.

  • For incoming calls, toll-free numbers are a great choice since your clients from the United States and Canada can call you without any long-distance fees.
  • For outgoing calls, the perception is different. A toll-free number can look like a telemarketer, spam, or robocall. Customers won’t likely answer unless they have your toll-free number saved.
  • Local numbers may feel more trustworthy. They give the impression that a caller will be speaking to a real person and not a robot.

Should I get a local or toll-free number for my business?

It depends. What we can tell you is that when deciding between a local and a toll-free number, you should ask yourself some important questions:

  • Is my customer base local, or do I have customers across the US and Canada? If your customer base is local, then get a local number. If your customer base is nationwide or international, get a toll-free number.
  • Is my company expanding across the country? If not, get a local number. If your business is expanding, get a toll-free number.

When to use a local phone number

Local numbers make sense for small, local companies that conduct most of their business within specific cities or regions. For example, if you travel between New York and Chicago for business meetings, having local numbers for both regions can help you connect with your business partners or clients.

Similarly, If you have a physical location, office, or shop in that city, a local number lets your client base know you’re close by and easy to reach.

When to use a toll-free phone number 

Toll-free numbers are great for businesses that don’t have an actual location but serve a wide consumer base across the US or Canada. For example, if you’re a software company and you offer customer support for your user base in the US, you would likely find a toll-free number useful.

However, if you’re a local art agency, you likely wouldn’t need a toll-free number.

How to get both local and toll-free numbers with OpenPhone

Here’s the deal: Choosing between a local or toll-free number is important, but many businesses, big and small, benefit from having multiple numbers. For example:

  • Use a toll-free number for incoming calls and customer support and a local number for outgoing sales calls.
  • Share a number with your team in order to delegate responsibilities and set specific hours for each team member.
  • Provide each team member with their own local number and personalized voicemail greeting for a professional touch.

And the best part? Having several numbers doesn’t have to break the bank. With OpenPhone, you can get local and toll-free numbers in Canada and the US. Whether you want to get a US toll-free number or a Canadian toll-free number, OpenPhone provides a flexible business phone service.

OpenPhone

Get local and toll-free phone numbers in minutes with OpenPhone

OpenPhone Conversations

Get started in three simple steps:

  1. Sign up for an account with OpenPhone. When you sign up, you can try OpenPhone free for seven days.
  2. During signup, select your city or area code in the US or Canada to pick your phone number or choose a North American toll-free number.
  3. After finishing the signup process (including choosing your preferred plan), you can start calling and customizing your phone settings.

You now have a virtual phone number. If you run into any issues during the signup process, fill out this form to reach our support team.

Keep in mind you can also use our phone picker tool that lets you search and choose from thousands of numbers with 800, 888, 877, 866, 855, 844, and 833 toll-free area codes:

Phone number look-up

Get a business phone system with OpenPhone

OpenPhone app

Getting a phone system through OpenPhone for your business is a better alternative than a regular landline or cell phone. You’re not stuck choosing between local and toll-free numbers — you can get as many numbers as your team needs.

With OpenPhone, you’re able to:

  • Make and receive calls from your toll-free and local numbers via mobile phones, desktops, and other devices.
  • Manage your business contacts and keep them separate from your personal contacts.
  • Set up business hours for each number so you’re not getting calls when you’re off the clock.
  • Forward calls to other phone numbers to make sure customers don’t fall through the cracks if you can’t pick up the phone.
  • Use virtual phone numbers that are reliable and only require a strong internet connection — no need to buy expensive hardware.
  • Use one phone number on two phones or more to be flexible with how you answer calls and texts
  • Easily identify what phone calls need your attention with Call views.
  • Summarize and transcribe calls automatically with AI, making it easy to get context on customer conversations.
  • Automatically tag calls after they’ve finished with relevant labels such as “Billing issue.”

Ready to get your business number and start calling and texting within minutes? Get OpenPhone today.

FAQs

Is it better to have a toll-free number or a local number?

Whether a local or toll-free number is the best choice depends on your business. Local numbers help build trust in specific communities since they make it clear you’re in the area. Toll-free numbers may convey the image of a more established business with a nationwide presence.

Will customers be charged for answering toll-free numbers?

Your business typically covers all costs associated with toll-free calls.

Can I manage multiple numbers for different teams with OpenPhone?

With a toll-free number service like OpenPhone, every rep can have their own phone number, or you can give them access to an existing shared number. Plus, you can assign separate numbers to different departments like sales or support. 

How can I switch from local to toll-free numbers if my business grows?

With a VoIP service provider like OpenPhone, you don’t need to switch numbers. Instead, you can buy more local or toll-free phone numbers as your business grows. 

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