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A firearm bill of sale is a document that records the sale of a handgun, rifle, or shotgun between a private buyer and seller, serving to transfer ownership and protect both parties legally. The video tutorial covers essential information about firearm bill of sale forms and provides guidance on obtaining a free template. It emphasizes that the firearm selling process varies across all 50 states due to differing gun laws. Key steps to sell a firearm include researching state laws and requirements, selling to a trustworthy individual, conducting a background check as necessary, negotiating sale terms, and creating a bill of sale.