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When I started out, I tried to keep all the factions happy. But doing this means slow progress towards high relations.
At the same time, I decided early on to not use Slaves. So, I could basically ignore House Darius without losing much. If you use Slaves exclusively, rather than workers, you could probably ignore House Ooqo and the Abolitionists.
In terms of factions you probably never want to anger, keeping the churches on your side gives nice all-around bonuses.
That said, all factions give you quests at different reputation levels, in addition to the random trade/mercenary tasks. So it could be worthwhile to get all factions to level 1 to get the easiest-to-access quest before you go into the negatives. For most factions, getting from negative reputation to 0 is almost impossible.
I don't know what happens at more negative levels, since I only have 1 faction at -1 (House Darius).
The outpost also unlocks a way to rapidly improve faction rep, But you want to avoid going down to like -100 or more, which can happen if you're raiding comitati.
Also, note that while negative relation with factions is ok, high criminal rating has extremely bad repercussions and should be avoided.
In major citiies, visit the authorities (exact location/wording varies, but should be the same general area as the bounty office). Somewhere in the menus there should be an option to "pay fines for your crimes" or something. If this option is grayed out or non-existent then you have no (or very low) criminal rating and nothing to worry about - if there's an option to "pay for your crimes" then you have a criminal rating and should probably do something about it (such as paying the fine here).
Note however that it's generally only possible to "pay the fine" using one of the options in this menu within a certain time period, so if you've paid a fine recently using this very menu (and in this location) then it gets trickier (as in, option could be grayed out due to time, but you're still a criminal). But in that case you will most likely be notified as you try to leave the town (and will usually have the option to pay a fine then and there).