Each state decides. Also any one is free to make a party, so the number is questionable.
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Democrat & Republican
== Political parties didn't really come until after the Constitutional Convention. At the CC, everyone was in pretty much agreement that the Constitution had to be fixed, and fast. Of course, there were some differences, but the first political parties didn't evolve until Washington's presidency. In his presidency, two of his cabinet members, Alexander Hamilton (Treasury) and Thomas Jefferson (State), did not agree on anything at all and hated each other, and the first political parties, the Federalists and the Democratic-Republicans, were formed.
There is a lot of animosity between the political parties in the United States. Each political party thinks that the other party is wrong, and they fight with each other over small things instead of trying to fix the big things.
George Washington was strongly against America dividing into two different political parties. In his farewell address, he wanted the people of his nation to be united, and he felt that political parties would turn his nation against each other. He also warned against foreign entanglements.
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