Want to setup basic home audio system

What do you plan on using as your source?
Streaming, CD player, turntable, tuner...?

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!