A record label is a brand or trademark associated with the marketing of music; recordings or videos. A record label can often also be a publishing company that manages such brands and trademarks; coordinates the production, distribution, marketing, promotion, and enforcement of copyright for sound recordings and music videos. They also conduct talent scouting and development of new artists ("artists and repertoire" or "A&R") and maintain contracts with recording artists and their managers. Record labels are now massive corporations that don't just own one record label but own a variety; these bigger labels are located in New York, los Angeles or Nashville. These large corporations usually consist of a headship company that owns more than one label, for example Warner Brothers Records owns Reprise Records and Maverick Records. BMG owns Arista Records, RCA and J Records. .
Independent record labels (or indie record label) are record labels that operate without funding from an outside organization of the major labels. Independent labels are a good way to get your music distributed and grow a fan base. Independent labels will give you less money to make your record than a major label would but they don't take as big a cut in it. What they gain in niche appeal they lack in larger distributing so often distribute in smaller, more regional zones. Independent labels are great stepping-stones for hard working artists looking to make a good record and get their music heard and boost their fan base. As a small band you want the record deal that gives you the biggest percentage of royalties from your record. Many artists have started with an independent label before making a deal with a major label although some stick to the independent for their whole career. Two of the most popular and successful independent labels are rough trade and pinnacle who in their peak were responsible for more than 30% of the music market, independent labels were set up for artists who wanted to keep the sound and image they already had and just get their music out there which is what rough trade do they are very much about what the artist wants rather than making money.