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In this tutorial, Matthew explains how to create a memorandum of understanding (MOU) using legal templates. First, viewers should click the link in the video description to access business forms. He instructs them to use the search bar to find the MOU template. The first step is to identify the first party as either a business or an individual and input their name, address, city, state, and zip code. The same information is required for the second party. Next, the video discusses the effective date of the memorandum and emphasizes detailing the project's name and objectives. Finally, Matthew highlights the importance of specifying the expertise and experiences each party brings to the collaboration.