Forum:Multiplayer LAN connection

I just started playing like 2 days ago and i play offline. I'm trying to play with my friend and when i type in localhost for the IP, it starts connecting and never moves on from that. I'm fairly certain i did the networking right since we can listen to each other's musics and stuff and my firewall has given acess to the game. So if there is anything i am missing i would really appreciate knowing.