How can I write C# application using Visual Studio 2010 that runs in background? By this I mean that it does not run in console or show a Form. Which type of project should I use?
In Windows, apps can continue to perform actions even when you are not actively in the app's window. These are commonly called background apps. You can decide which apps will run in the background, and which won't.
Background applications can eat up your battery and utilize the resources. There are some applications which probably won't be optimized well, some might be malicious or have malware, or some applications just have a bug.
Use a windows service template
Add a new project of type 'Windows->Windows Service'.
Here is a walkthrough
You can use a Windows project that doesn't show any forms, or you can use a Windows Service project.
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