In this paper, we provide a characterization of multipartite entanglement in terms of equivalence classes of states under local unitary transformation (LU) by demonstrating a simple method to construct all homogenous polynomials that are invariant under local unitary group(LUIPs) for any fixed degree. We give an upper bound on the degree of the LUIP such that the ring of LUIPs can be generated by LUIPs with degree lower than the bound. Our characterization can directly generate an algorithm whose output is a generating set of LUIPs. By employing the concept of LUIPs, we prove that multipartite entanglement is additive in the sense that two multipartite states are LU equivalent if and only if
n-copies of these two states are LU equivalent for some
n. The method for studying LU equivalence is also used to classify the different types of multipartite mixed entanglement according to equivalence classes of states under stochastic local operations and classical communication (SLOCC), where the pure states case was previously studied by Gour and Wallach using another approach.