A very good DAW is Reaper.
It does the same things you would expect from Pro tools or Cubase.
This is more advanced than Audacity.
Try it for free and if you like it buy it or donate.
http://www.cockos.com/reaper/download.php

Hardware:
All you need to start off is an USB sound interface.
(You can find inexpansive ones on ebay)

After you get used to recording with this setup, you can upgrade to a more powerful computer, interface with plentty of ins and outs, monitors, screens, etc.

But the way, Reaper accepts most VST and VSTI plugings, whereas Audacity is very limmited on that regard.

Good luck :)