Depends on the company. :)
If its a friend dropping by unexpectedly, I don't mind if they see my house being lived in - dishes in the sink, blankets strewn around the living room, books on the table, shoes kicked off by the couch. That's okay. (Although I'd totally make sure the bathroom is wiped down.)
As long as the house is clean underneath, I don't mind if there is "life" visible - it didn't used to be that way, though. Its only been since my house is decluttered, and very manageable for me. I know when I go to other peoples homes, I enjoy seeing their homes in their natural state. I love when I do homevisits with families, and the house is absolutely spotless. Then we come when she's in labor, and the house is totally normal lived in...so real!
If I am inviting someone over to hang out and spend time in my space, I think thats different and I try to make the space should be pleasant for them. Freshly cleaned bathroom and kitchen, straightened and clean living area. I usually do incense, but I love the idea of something bubbling on the stove!