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A firearm bill of sale is a document that outlines the details of a gun sale between a private buyer and seller, ensuring the transfer of ownership and protecting both parties in legal matters. The video tutorial covers essential information on firearm bill of sale forms and how to obtain a free official template. It emphasizes the importance of understanding state-specific gun laws, as the process varies across all 50 states. Key steps include researching state laws, selling to a trustworthy person, conducting a background check (if required), negotiating sale terms, and creating the bill of sale.