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A firearm bill of sale is a document that details the sale of a firearm, such as a handgun, rifle, or shotgun, between a private buyer and seller. It facilitates the transfer of ownership and protects both parties in case of legal issues. The video explains essential information about firearm bill of sale forms and provides guidance on obtaining a free official template. It outlines best practices for selling a firearm, noting that processes vary by state due to different gun laws. Key steps include researching state laws, ensuring the buyer is trustworthy, conducting a background check (as required or optional), negotiating sale terms, and creating a bill of sale.