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Kevin demonstrates how to create a fillable form using Microsoft Word. Fillable forms allow users to input information without altering the form's structure. Various elements like check boxes and text fields can be used to create the form. Once completed, the form can be emailed, printed, or connected to a database. Sample files are provided for guidance, and the process is similar to Adobe PDF forms. A Word document is needed to begin creating a form, as shown with an example order form for the Kevin Cookie Company.