Place the couch in the center of the room, facing the focal point. This can be a fireplace, television or even a great view.
Position one chair on either side of the couch, facing the middle of the area between the couch and the room's focal point. Each chair should be two to three feet from the couch and the focal point.
Locate the third chair in a corner behind the couch, with a floor lamp next to it. This space can be used as a reading area, set off from the rest of the room.