Decide what type of station you want and whether you want it to be a 24-hour broadcast. Some stations play strictly rock music, others play rap or country, and others are mix stations, playing a little bit of everything. The style of music your station plays will help you decide on a name for your station.
Purchase the hardware you'll need. You really need only two pieces of hardware: a microphone and a recording interface. You don't have to buy the most expensive professional microphone, but get a decent condenser mic. A good mic is the MXL 990, which you can purchase for about $50. The Line 6 Tone Port interface is a cheap and effective recording interface that will allow you to run your microphone's input straight into the station.
Set up an account on UBroadcast. UBroadcast allows its users to create their own stations and radio shows free of charge and with no fear of being censored.
Download the UBroadcast software and install it on your computer.
Contact the artists and record labels to get permission to play their music. Find out from the record label what you need to do to play their music. You will likely have to pay royalties to the artist and label. The royalties might be per play or one fee for a certain number of plays.
Plug the interface into the USB port on your computer and your microphone into the interface. Install any software bundled with the interface.
Open the UBroadcast software and sign in.
Click on the "Add MP3" option in the upper left corner of the software. Add the music you would like to play to the playlist on your station manager software. You can name the playlist and save it for future use.
Click "Go Live" to start broadcasting your radio station. You will be given a screen where you can name your station, your show and the person doing the broadcasting.
Visit local businesses and offer to sell them some advertising time on your station. UBroadcast allows users to sell advertising time to businesses and keep all the money made from the advertising. This is a great way to make a little extra money or to cover the cost of royalties.