At this point in John’s writings, it is not yet made clear that the “Word” written of in this verse is related to the Man, Jesus. That point will be made clear as this chapter progresses, though. At this point what we have is a description of God as “the Word.” Why does He call Him “the Word?” That too will be explained later.
What we have here is John writing that the “Word” was “with God.” The phrase literally means the Word was “before the face of God.” And though the angelic host is also in the presence of God in Heaven, they cover their faces in His presence (Isaiah 6:2). Furthermore, the angels are created beings; they had a beginning. As John has already stated, the “Word” was “in the beginning.” The Word is eternal, and thus has always been with God. The Word has forever been with God and yet the writer also says: “and the Word was God.”
Literally that phrase means “and God was the Word.” This makes it clear that the phrase “the Word was with God” should not be misread to imply that the Word was only with God, the way the angels are with God” but instead that the Word Himself was God. Of course that raises the question “how can God be with God?” And the answer is found in an understanding of the multi-faceted nature of God. He is shown in Scripture to have three distinct personifications. There is one Divine nature, called “God,” and both the Father and the Word (and the Holy Spirit) share in that Divine nature.
Thus, the Word is God and the Word is with God.
Mind blown? Mind blown.