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As for the reason, I think they do this so that updates/downloads can continue when the UI is closed.
(the small "up-arrow" at the right of the windows toolbar)
Since I let Steam start when windows starts, that is where I start Steam from if I want to use it.
That wasn't the question.
close it in this tray area and it should stop it from running in the background
I'm aware of that, why are you replying to me with this?
Yes, I have the same issue. My laptop sucks and I can tell when steam is operating in the background and there is no way to shut it off permanently. Even if I try to shut it off manually it just turns right back on. The worst part is I could start up my PC and not touch steam the entire time and it will start up even if my settings are set to not start it up. It's unnecessary and stupid. Pressing those three buttons doesn't solve the issue, it just creates more frustration. I was reading a three year old thread so this is not new but there's also no way to fix it. If there is a way and I'm missing it, please comment and let me know. But, if your comment says press those three buttons then you can't read. Steam, fix this issue and stop ignoring your discussion boards.