I decided to use a javascript onclick event and grab the link id to show the form when the button is clicked. However, for some reason I cannot get it to display the form still.

Here is the updated category view file

@extends('layouts.main')

@section('content')

	<div id="admin">

		<h1>Categories Admin Panel</h1><hr>

		<p>Here you can view, delete, create, and edit new categories.</p>

		<h2>Categories</h2><hr>

		<ul>
			@foreach($categories as $category)
				<li>
					{{ $category->name }} - 
					{{ Form::open(array('url'=>'admin/categories/destroy', 'class'=>'form-inline')) }}
					{{ Form::hidden('id', $category->id) }}
					{{ Form::submit('delete') }}
					{{ Form::close() }}

					{{ HTML::Link('#', 'edit', array('class'=>'form-inline', 'id'=>'button', 'onclick'=>'showEditForm(this)'))}}

					
				</li>
			@endforeach
		</ul>

		<h2>Create New Category</h2><hr>

		@if($errors->has())
		<div id="form-errors">
			<p>The following errors have occurred:</p>

			<ul>
				@foreach($errors->all() as $error)
					<li>{{ $error }}</li>
				@endforeach
			</ul>
		</div><!-- end form-errors -->
		@endif

		{{ Form::open(array('url'=>'admin/categories/create')) }}
		<p>
			{{ Form::label('name') }}
			{{ Form::text('name') }}
		</p>
		{{ Form::submit('Create Category', array('class'=>'secondary-cart-btn')) }}
		{{ Form::close() }}
	</div><!-- end admin -->

@stop

<script>
function showEditForm(id) { 
    id.innerHTML="

   
	{{ Form::open(array('url'=>'admin/categories/edit')) }}
		<p>
			{{ Form::hidden('id', $category->id) }}
			{{ Form::label('name') }}
			{{ Form::text('name') }}
		</p>
		{{ Form::submit('Edit Category', array('class'=>'secondary-cart-btn')) }}
		{{ Form::close() }}

	";

}
</script>

anyone?

Although you can be using different view files, even this approach is okay and can be as simple as passing a variable :

So, for example you access this page via route : GET /admin/category ( View : category.index) :

public function index() 
{
    $categories = Category::all();

    return View::make('admin.category.index', compact('categories'));
}

And to create a new category `POST /admin/category' :

public function create() 
{
    Category::create(Input::all());

    return Redirect::back()->withSuccess('New category created.');
}

Now, to show form to edit a category use GET /admin/category/{category_id}/edit

public function edit($id)
{
    $categories = Category::all();

    return View::make('admin.category.index', ['id_to_edit' => $id]);
}

And the last one to make the edit by PUT /admin/category/{category_id}/edit

public function update($id)
{
    Category::find($id)->update(Input:all());

    return Redirect::back()->withSuccess("Category $id updated.");
}

Now just make a conditional juggle in your view.

admin/category/index.blade.php

...

@foreach ($categories as $category)
//...show category index
@endforeach

if( isset( $id_to_edit ) ) {
    //... show form to edit category
} else {
    //... show form to create new category.
}
...

Also, in real world scenario there is a lot you have to do. Like validation and stuff...

Thank you @mcraz. I was missing the foreach loop logic in my view. This is what I needed.

Your logic looks right, I am having a hard time implementing it with what I already have. I know that I will have to have a link or button that will call the edit function in my view. Then I will have a condition in view that shows if id is set or clicked on then show edit form I am not sure how to call the id in the form and what id it is. Here is what I have so far. I think the edit and update function are correct

<?php

class CategoriesController extends BaseController {

	public function __construct() {
		parent::__construct();
		$this->beforeFilter('csrf', array('on'=>'post'));
		$this->beforeFilter('admin');
	}

	public function getIndex() {
		return View::make('categories.index')
			->with('categories', Category::all());
	}

	public function postCreate() {
		$validator = Validator::make(Input::all(), Category::$rules);

		if ($validator->passes()) {
			$category = new Category;
			$category->name = Input::get('name');
			$category->save();

			return Redirect::to('admin/categories/index')
				->with('message', 'Category Created');
		}

		return Redirect::to('admin/categories/index')
			->with('message', 'Something went wrong')
			->withErrors($validator)
			->withInput();
	}

	public function postDestroy() {
		$category = Category::find(Input::get('id'));

		if ($category) {
			$category->delete();
			return Redirect::to('admin/categories/index')
				->with('message', 'Category Deleted');
		}

		return Redirect::to('admin/categories/index')
			->with('message', 'Something went wrong, please try again');
	}

	public function postEdit($id) {
    	$categories = Category::all();

    	return View::make('admin.category.index', ['id_to_edit' => $id]);
	}

	public function postUpdate($id) {
    Category::find($id)->update(Input::all());

    return Redirect::back()->with('message','Category $id updated.');
}
}

Here is my view for categories

extends('layouts.main')

@section('content')

	<div id="admin">

		<h1>Categories Admin Panel</h1><hr>

		<p>Here you can view, delete, create, and edit new categories.</p>

		<h2>Categories</h2><hr>

		<ul>
			@foreach($categories as $category)
				<li>
					{{ $category->name }} - 
					{{ Form::open(array('url'=>'admin/categories/destroy', 'class'=>'form-inline')) }}
					{{ Form::hidden('id', $category->id) }}
					{{ Form::submit('delete') }}
					{{ Form::close() }}

	
					{{ Form::open(array('url'=>'/admin/category/{category_id}/edit')) }}
					{{ Form::hidden('id', $category->id) }}
					{{ Form::submit('edit') }}
					{{ Form::close() }}
				</li>
			@endforeach
		</ul>
		
		@if( isset( $id_to_edit ) ) {
    		//... show form to edit category
		} else {
    		//... show form to create new category.
		}
		@endif

		<h2>Create New Category</h2><hr>

		@if($errors->has())
		<div id="form-errors">
			<p>The following errors have occurred:</p>

			<ul>
				@foreach($errors->all() as $error)
					<li>{{ $error }}</li>
				@endforeach
			</ul>
		</div><!-- end form-errors -->
		@endif

		{{ Form::open(array('url'=>'admin/categories/create')) }}
		<p>
			{{ Form::label('name') }}
			{{ Form::text('name') }}
		</p>
		{{ Form::submit('Create Category', array('class'=>'secondary-cart-btn')) }}
		{{ Form::close() }}
	</div><!-- end admin -->

@stop

Here is my routes

Route::get('/', array('uses'=>'StoreController@getIndex'));

Route::controller('admin/categories', 'CategoriesController');
Route::controller('admin/products', 'ProductsController');
Route::controller('store', 'StoreController');
Route::controller('users', 'UsersController');