Not exactly, you can just go to your Singleplayer menu, select the desired world in the list and hit the red "LAN" button then This starts an integrated server, no need to add Java or something like that. It's basically like running a singleplayer game, with the exception, that your friends could join the game (only if you want that).
I tried that. I got the permissions working just fine with the dedicated server, but I can't seem to change any permissions when just opening a single-player game to LAN. I don't see any permissions generate anywhere when that happens, and I don't know where to place the permissions folder I've already made that works. I tried placing them in the world's folder, but that didn't accomplish anything.
I finally figured it out. It makes sense now that I think about it. The permissions folder is placed in the same relative position it would be on a server, so in the root directory. I figured it had to be in the world's folder so each world could have it's own permissions. That's a valid point point though. I think it makes more sense for each world to have it's own permissions rather than each game installation or server installation. In any case, marking as done. Thanks for the help.