The Council of Elrond was held in Rivendell on October 25th of the year TA 3018. There were persons there representing each of the free races: Elves, Dwarves, Men and Hobbits.

Gloin and his son Gimli had come to tell Bilbo Baggins that he was being searched for by Sauron.

Boromir II of Gondor journeyed all the way from Minas Tirith to find the answer to a dream telling him and his brother of Isildurs Bane and the Sword that was Broken.

Legolas son of Thranduil brought the news to Gandalf of Gollum's escape from the Elves of Mirkwood.

Also present were Frodo Baggins, bearing the One Ring, Bilbo Baggins, Gandalf, Erestor, Galdor, Glorfindel of Rivendell, Aragorn son of Arathorn II, and Elrond himself. Also attending the council but remaining hidden for the most part so he would not be thrown out was Samwise Gamgee.

After much debate, four main proposals were put forward:
Erestor, Elrond's chief counsellor, suggested taking the One Ring back westward to Tom Bombadil, in the hope that he could withhold it from Sauron.

Glorfindel suggested something similar: carrying the Ring west to the Great Sea and casting it in. Both of these courses were thought too dangerous to attempt, and rejected.

Boromir wanted to take the Ring and wield it against Sauron. Glóin and the other Dwarves present at one point also backed up this plan. However, none of the other who might have taken up the Ring would agree to do so.

The final conclusion of the Council was to follow the course devised by Elrond, to carry the Ring into Mordor and cast it into Mount Doom. Not all at the Council agreed with this course. Erestor in particular saw little hope of succeeding.

Frodo offered to take the Ring to Mordor. Eight others either volunteered or were appointed to go with him: Samwise Gamgee, Gandalf the Grey, Aragorn, Boromir, Gimli, Legolas, and the Hobbits Meriadoc Brandybuck and Peregrin Took. They were known as the Fellowship of the Ring, and set out on December 25, 3018.

[also including information from lightning_princess17]
Encyclopedia entry originally written by Eowyn_Touched-By-Frost