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A firearm bill of sale is a crucial document that records the sale details of a handgun, rifle, or shotgun between a private buyer and seller, serving to transfer ownership and protect both parties from legal issues. The video tutorial outlines key information about firearm bill of sale forms and where to obtain a free official template. It emphasizes that since gun laws vary across all 50 states, the selling process will differ based on local requirements, which may be stricter or more lenient. It presents six best practice steps: research state gun laws, consider selling to someone trustworthy, perform a background check as needed, negotiate sale terms, and create a bill of sale.