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According to Mormon doctrine, before this world was made, we were all in the presence of God the Father. We had always existed as spirit, and even spent an undetermined time in school learning the laws and progressing until ready to be born. This is called the first estate.
We were not alone in the pre-existence, because animals and plants had souls as well.
When the time came that all were ready for mortal life, a council of the Gods was held. Here the spirit children of God were told that they were worthy to progress to the second estate, namely mortal life.
The next order of business dealt with how to go about achieving this goal.
Satan didn't like having his plan rejected and he convinced 1/3 of the spirits in heaven to side with him and fight God.