In some countries, the term “independent radio” refers to a commercial or privately owned station because the government does not control it. The reverse is said to be true in the United States because in the U.S. the term refers to non-commercial radio, which can be owned neither by a commercial company nor by an individual. Independent radio stations are owned and operated by a variety of groups including the government, non-profit organizations, community groups, and both public and private schools. The majority of these stations are usually run and broadcast at the local level using Low Power FM (LPFM). With the exception of college radio and very small radio stations (with a broadcast range of approximately 200 feet), independent radio stations need a license to operate.

Both commercial and independent radio are licensed and regulated through the Federal Communications Commission (FCC). The FCC refers to independent radio as non-commercial-educational radio because these stations do not promote or advertise commercial companies or their products and they educate the public in some way. The education can be in the form of music, news, public service announcements, and other forms of audio communication as long as it excludes media that is commercial, offensive, or politically biased in nature. Only commercial entities, religious organizations, and private individuals are prohibited from obtaining a license to operate this type of radio station.

Although non-commercial radio cannot promote commercialism, stations can accept and recognize contributions, sponsorships, and underwriting from commercial companies. The on air identification of these companies, however, is regulated by the FCC. Much like public television, independent radio is also supported by securing government funding and/or by soliciting patrons for contribution. Since the support of independent radio comes from the public and the majority of these stations are LPFM, independent radio is highly influenced by its listeners and is customized by its local culture.