No idea. Never dealt with an online store before, so I would not really know. May want to take a look at quite a few of them though, and comparisons between them based on features/price/security/performance etc.
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What legal issues i have to deal with?
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People adding music they have no rights to as a download.
People selling real world fake CDs.
Disputes between artists and companies and the like.
May really want to speak to a lawyer about this part.
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How do i copyright my site?
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Unofficially, this is automatic as soon as you create it. From a court perspective, and in the USA, you could register with the copyright office or something. I also hear in some other countries like the UK, formal registration is not a must even if it reaches the courts. As said, I have no experience of people stealing my ideas before or content.