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In this tutorial, Matthew guides viewers on creating a daycare contract using Legal Templates. He starts by directing them to a link in the video description that leads to legaltemplates.net. Once there, he instructs users to navigate to the business forms section and select "view all business forms." He recommends using the search function to find the daycare contract and demonstrates how to preview the PDF to understand its layout. The process involves defining the type of transaction as a service, followed by entering the service provider's information, including their address and city. Matthew chooses a state without specific reasoning.