The Federalists wanted strong ties with Great Britain and leadership by wealthy men while the Republicans did not want any kind of relationship with Great Britain and favored state authority. The Federalist Party died out after the War of 1812.
By 1796, both the Federalist and Republican parties were well-developed and going strong. Neither party was particularly well organized, but each was strong and fought fiercely for what it believed in.
The Federalist Party was born in the 1790s and became associated with President George Washington, despite the fact that Washington avoided dealing in partisan activities. This party believed that the United States had much to learn from Great Britain and that the government should be modeled after the government of England. It wanted a strong, centralized bank and a federal constitution.
The Republic Party already existed when the Federalist Party was formed. Republicans believed that any relationship with Great Britain would result in America always being under the smaller country's "thumb." This party wanted complete independence and believed that by giving states power, it would be creating a better relationship with the federal government, thus making the country better able to care for its people. The Federalist Party did not last very long and the Republican Party of today has no ties with the Republican Party of the 1700s.