A formal letter has the sender's address and the date in the upper right corner, unless it is written on letterhead. Below that, on the left side, it has the recipient's address.
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A complaint letter is a formal letter which contains the recipients address as well as details of the complainer. It should state all grievances and clearly indicate the areas of complaint in a categorical manner.
It should be formal. But what do I know :)
One would use formal language in a business letter because it is a formal means of communication. When writing a business letter, one wants the tone to be professional. Formal language can help the writer to achieve this.
The first sentence of the first paragraph of a business letter tells the recipient why you are writing (the purpose of the letter). Even a formal letter should not be too formal as to sound stilted. The important thing about the language of a letter is to be clear and concise without being terse.
A bussiness letter will be a lot more formal