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Emulators are perfectly legal (doesn't matter whether or not you own the system). ROMs of commercial games have debateable legallity. Some argue that they're legal as long as you own the game, some argue that they're legal for 24hrs if you don't own the game, some argue that they're completely illegal unless you dump them yourself, and still others argue that they're completely illegal, period. BIOS files are illegal unless you at least own the system (and most would say unless you dump them yourself).
Emulators are legal even if you don't own the system because A ) they're merely an immitation of the hardware, not an exact copy of it and B ) because you can use them to play public domain roms and/or to develope games yourself.
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