We present our current understanding of the formation and early evolution of protostars, protoplanetary disks, and the driving of outflows as dictated by the interplay of magnetic fields and partially ionized gas in molecular cloud cores. In recent years, the field has witnessed enormous development through sub-millimeter observations which in turn have constrained models of protostar formation. As a result of these observations the state-of-the-art theoretical understanding of the formation and evolution of young stellar objects is described. In particular, we emphasize the importance of the coupling, decoupling, and re-coupling between weakly ionized gas and the magnetic field on appropriate scales. This highlights the complex and intimate relationship between gravitational collapse and magnetic fields in young protostars.