Want to setup basic home audio system

thecarpathian asks the most important question. At that budget, using vinyl as your source is going to really limit your other components. Streaming could be an inexpensive source initially allowing you to put more in speakers and amplification. Also, are you willing to buy used or do any DIYing? How big is the room And how visible can the equipment be are other considerations once you start attempting to determine which components to purchase. 
To start answering your original question, you need a source, amplification, and speakers, as well as cables to connect. 

Whatever you do, there are enormous bargains out there, used. The Music Room is a great source, but if you educate yourself a bit, you can likely get a good streamer, DAC, integrated, and speakers for $1k, though perhaps the DAC could just be built into the integrated. Much depends on your taste, but likely gear could include Schiit or Parasound, Topping, Emotiva, Bluesound, Elac, Klipsch, and many others. Possibly of interest: https://www.youtube.com/watch?v=Fdb8wLd73Tg

thecarpathian: 
For now, I will be streaming music from my hard drive and internet streaming.

ovinewar:
My room size is 11x12. I would live to buy yesteryear used equipment but do not know what to look for or even what brand and models are good at that price point. I have been thinking of stretching my budget up to 1.5k but strictly can’t go over that. 
hilde45:
Thanks for the suggestion! I will check out the music room. There are so many different equipment and options just in the stereo world that it amazes me how people even know what they want!

Waiting to hear how you are going to source your music. 

Wharfedale makes great bookshelf speakers that would fit into a sub $1000 system. Paired with a Yamaha A-S301 integrated amplifier which has internal phonostage and DAC onboard would make for a good start. A computer could be used as streamer.

Do you have Audio outlets nearby? If not look into Audio Advisor and Music Direct online. Buy used, the Audiogon market place is good for that. 

I would concentrate on used equipment.
Deals galore!
USAudiomart is also a great place to look.
You can even shop within your state.