Your living room is where you invite and entertain your guests. It needs to have the a comfortable and welcoming feel to it. Some of the things you can do include:
Creating the feeling you want with small details in the room like decorating walls, furnishing, shelves, etc.
Arranging the furniture in a way that would enable everyone to interact without being uncomfortable in their seats
Using warm, yet not too dark colors for the walls to cream a cozy feel to the atmosphere
Adding contrasting objects and details to the room to create style along with comfort.