We have rules, they've just shifted a bit over the years.
Originally, Meg was not allowed on any furniture except my bed. Even that appalled my mother, but it was my bed so she let it go. She doesn't understand the appeal of waking up next to a dog, but just because she's never experienced it. (That's Meg's pillow, I don't sleep on such a gross thing)
Then I got sad watching Meg stand under the window in my den trying to see out, so I gave her the ottoman to my reading chair and covered it with a blanket. So they had my bed and the ottoman that were free range.
Then we got all new living room furniture, and Meg decided, despite many years of never getting on the furniture, that the nice reading chair by the window was hers. My mom is a softy, so she ordered a nice custom cover for it and Meg had the bed, the ottoman, and the chair downstairs.
Then Gusto came along, and of course he needed his own chair to be fair. So Meg had the chair by the window, and we got a custom cover for the recliner for Gusto.
But then Meg decided that was also her chair, and once she had slept on it once, Gusto was too respectful to get on it. So we moved his little doggie carseat into the living room, because it is too small for Meg to claim, however much she tried
It doesn't live in the car, because it was purchased to replace the human carseat that Gusto thinks is the Best Thing Ever. He won't use the doggy one in the car, so we just bought this off my cousin, cut the belts out of it, and yes, Gusto rides in this (in my mother's car). She tried to get me to put it in my car, but I pointed out that I scare men off enough by myself.
So Gusto was without a chair, until I came in one day and he was in the nice reading chair in my den. I told him off, and this happened.
So now both dogs sleep on the bed and the ottoman, Meg has two chairs downstairs, Gusto has one doggy car seat downstairs and, as long as he follows his own rules that "on the back of the chair isn't ON the chair", has the reading chair in my upstairs den.
But they are totally not allowed on the couch. Unless it is covered with a blanket and they are invited up. They both start spinning in circles when they see me pick up this blanket.
As you can see, it is very important to have firm household rules so the dogs don't try to dominate you.