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You can choose which faction to represent at the start of each adventure. There are no penalties for switching factions often or halfway through a character's career.
Factions are mostly flavour and don't contribute much to the adventure as a whole, but you can get some goodies out of them if you gather enough reputation with them.
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Factions used to be more of a thing to align your character with in first edition: There were somewhat impactful boons to get from them, they had an ongoing storyline that transcended seasons, and you couldn't just change faction. Unfortunately second edition doesn't do much with them: They mostly give access to some minor boons, and when the faction is tagged in the description of an adventure, it gives a vague indication as to the direction the story is going go be about. I still wish they'd do more with them.