Always play with Liverpool myself as I'm a Liverpool fan and have been using FM as an escape from reality the past seasons...
This year I found it necessary to make big changes as early as possible. So the first transfer window I got rid of Mignolet, Sturridge, Suarez, Skrtel, Henderson, Enrique, Toure and brought in players like Balanta, Verratti, Hughes, Shaw, ter Stegen.
Mignolet is very underrated in the game, same with Sturridge. Suarez is good, but you'll be able to get a good fee for him to allow you more freedom on the transfer market to rebuild your squad. Enrique, Henderson and Skrtel can still perform for you, but personally I always buy young talents so I let them go. Toure is old and on fairly high wages.
As for formation, I'm going with a similar tactic to the one I used last year. 4-2-3-1, playing attacking minded possession football - which just happens to be exactly what the board wants. It could be a bit difficult to get your lone striker to score, I had problems with both Vela and Fierro but managed to sell them both for 30m and 17.5m respectively. I signed Timo Werner and Gabriel Barbosa, who are more equipped to play AF or CF, which helps a lot when using a lone striker on this game (at least for me). The most important thing in my opinion is having good IFs, and I'm currently using El Shaarawy and Lamela as first choices. The first couple of seasons I used Gaitan and Sterling, who also did pretty good jobs.
You could try a more defensive formation than me, as I conceded a fair amount of goals in the start - although I scored a lot more. But you'll probably still want to play possession football, and fairly attacking minded, if you want to befriend the board. So in my opinion it's important to make a good assessment of the squad in the start, make a plan of which areas you want to strengthen and with what type of players. Sign players that fit into your preferred tactic. And of course, take a look around the forum for bargain buys and general tips.
Good luck!