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A firearm bill of sale is a document detailing 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 important information about firearm bill of sale forms and where to find a free official template. It emphasizes that firearm sale processes vary across all 50 states due to differing gun laws, with six best practice steps to follow: research state laws, sell to a trustworthy individual, perform a background check (as required or optional by state), negotiate sale terms, and create a bill of sale.