If Mormons believe in the necessity of being baptized in the LDS Church, does that mean they believe that everyone else is going to go to hell?!

The short answer is no, we do not believe that everyone who isn't Mormon is going to go to hell. In fact, if hell is referred to as fire and brimstone and endless torment, we believe that VERY few people will be cursed to such a punishment. We also believe that not everyone baptized into the Mormon Church will end up in the highest 'degree of glory' (to live with God). It takes faith, diligence, and devotion to God to end up with Him in the end.

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Ep. 540- fear of failure