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To work with MSSQL databases you have to install MSSQL server on your PC. How to install MSSQL server you can find in the Internet. For example, how to install Express version you can find here.

Important! For TCP / IP connection the user should be created in SQL Server with the ability to authorize through the SQL server (not through Windows!):

 

 

And you have to provide user possibility to create tables, read, write into database and other function. The most easy way to is to provide sysadmin server role:

 

 

And SQL Server itself should allow more than just Windows authentication:

 

 

Also don't forget to check your firewall. Port used by MSSQL server (default 1433) should be opened.