A LAN ( Local Area Network ) refers to a small sized network which is mostly directly connected or connected with a hub , switch or access point. There is not any backbone routers / switches in a local area network like MPLS or ATM. LAN devices are in the same office, home or school. If you connect seperate LANs together then it is a WAN ( Wide Area Network ).
As we talked in this article you can use various devices in a LAN :
Switch : Forwards frames according to MAC Address table information.
Hub : Hub is known as a “stupid switch” as well. It gets the information from one of its ports and forwards it all other ports.
Printer : You can get the hard copy of whatever you want via printer.
LAN Card : LAN card is used for connecting network devices to a switch, hub or router etc.
IP Phone : Used for voice over IP calls.
Access Point : Provides wireless connection between network devices.
Cables : Provides wire connection between network devices.
Server : Provides software support to the other network devices.
Mobile Phones And Computers : Used for accessing the network by the last users.
If you want to create a LAN with minimum requirements, you can use just two computers and connect them together with a cable and that is it ! Surely Internet Protocol connection is used in most Local Area Networks. You can use different or same subnet masks too for connection but if you are using different VLANs in your LAN, you need to use a layer-3 device too like a router.