When Snow White and the Seven Dwarves started their own apple business, Frosted Apple Bites, they each contributed equal amounts of capital but did not sign a formal agreement or register their business with the state. In addition, they each equally contributed to the daily operations of the business. Ten years later, Snow White and the Seven Dwarves formalized their business and registered it with the state. Frosted Apple Bites has $30$ shareholders. Snow White and the Seven Dwarves purposely agreed to limit the number of shareholders to no more than $100,$ so everyone could enjoy the benefits of being taxed like a partnership. Recently, Snow White has discovered some discrepancies in the company$$s financial statements. Snow White decided that Frosted Apple Bites should start using GAAP and plans to bring it up at the next shareholders$$ meeting.

Based on the facts presented, what form of business ownership did Snow White and the Seven Dwarves initially form? Based on the facts presented, what form of business ownership did Snow White and the Seven Dwarves most likely form $10$ years later? Explain the reasoning for your answers.