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GMRS and FRS Radios
Two license classes cover most short-range handheld radio use in the United States, and people confuse them constantly.
FRS
FRS is the Family Radio Service. It requires no license. Power is capped at 2 watts on channels 1-7 and 15-22, and at 0.5 watts on channels 8-14. Antennas are fixed and cannot be replaced. Realistic range is well under a mile in terrain, despite what the blister pack claims.
GMRS
GMRS is the General Mobile Radio Service. It requires a license, but there is no examination — you pay a fee and the license is issued. One license covers your entire immediate family, and it is valid for 10 years.
GMRS allows up to 50 watts on the main channels, removable antennas, and repeater use, which is what actually extends range beyond line of sight.
Sharing channels
FRS channels 1-7 and 15-22 overlap with GMRS frequencies, so an FRS handheld and a GMRS handheld can talk to each other on those channels.