Greetings Commanders, We’re pleased to announce that, starting today, we’re implementing a new and revamped application system for Player Minor Factions. In re-working the original system for applying for a player minor faction, we are now able to process player minor faction applications...
As you can see by most of the table there... your average player probably considers them one and the same. That's not the case. I know the post is from 2017, but on the rare occasions FD refer to my group, they use the group name, not the in-game faction name (just like how Squadrons and Factions are distinct and different entities)
Don't go for a giant population system (high millions or billions) if your group is new and small. You can always expand into those but you don't want your home system to be a nightmare to take in the first place.
Be sure you check out your surroundings for your desired system. Look for how populated the area might be with other player minor factions. This is actually becoming harder to avoid but try to give yourself some expansion room.
Check your Power. Powerplay powers have certain government types they are favorable, neutral, and unfavorable to. Try and choose a govt type favorable to the power in your area, otherwise the power is likely bigger than you and will beat you into submission. (I know this because I do it, and I hate that FDev makes me do it but never the less, it is what it is)