Please keep in mind that there are dozens of different types of local businesses. You can keep it general by just defining your local business as “local business” or you can choose which type by selecting one of these. Find more types of local businesses at schema.org.
Code Snippet Updated April 2019: Google added a bunch of new requirements to this. They also want a “price range” but not a lot of people like to do this.
Note: you can obtain the latitude and longitude for your business using this tool.
A search engine crawler will read the code. After a period of time, the search engine results page for users performing a “branded search” will yield the below information (see photo). It is important that this information generally presents only for users who are performing the search within your geographical area.