Whats the difference between formal and informal Korean when speaking to people? How strict is formality and how often do people not care about age or ranks in terms of formality?

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@HillaryMiranda If you are confused with formal and informal speaking, then just think that formal is first. Unless he/she is a little kid, you should talk to him/her using formal. And later if you get closer with him/her, you can use informal. You can ask : "우리 말 놓을까요?" "우리 말 놓아도 될까요?", "Can we speak informal(not using formal?)" "May I speak to you using informal(not formal)?" But you never use informal speaking to the elderly and use formal to elders.
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We have three / 3 speech levels :
informal / impolite / casual / 해체 / 반말:
When you're talking to the same age(friend), someone younger than you, the children, family.
(low formality / low politeness)
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informal polite / less formal / 해요체 / 존댓말: (요, sentence ending)
When you're talking to strangers(someone you don't know), someone older than you, boss, seniors, teachers.
(low formality / high politeness)
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more formal / polite / 하십시오체 / 높임말: (니다, sentence ending)
When you're talking to olders, elders, seniors, boss, army, officers, teachers, everyone(especially to many people out there).
(high formality / high politeness)
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e.g :
I love you, 사랑해 informal 사랑해요 less formal 사랑합니다 more formal
I'm sorry, 미안해 informal 미안해요 less formal 미안합니다 more formal
Thank you, 고마워 informal 고마워요 less formal 감사합니다 more formal
I am Korean, 나는 한국인이야 informal 저는 한국인이에요 less formal 저는 한국인입니다 more formal