Yes, you make all new factions.  That allows the table to customize the game environment to taste and provides ample buy-in.  Got a Military character?  Write up the Faction with whom they served.  et cetera.  That's how I got away with those ridiculous Potterverse VSF folks I keep promising not to inflict on people.  :D<br/><br/>No, the factions are not pre-set (caveat!  Sean is working on the Carta Galaxia, which will contain pregen factions in a 'here is how to do this' sort of way).<br/><br/>Once we decide on factions, then all PCs split three debt and one favor among the Factions (as in 'who do you owe and who have you worked with before') and then decide whether the Ship as a whole is aligned with a faction or independent.