Creating a New Organization - (selecting the organization record type)
If you wanted to add a contact to the system from a business card, for an organization that isn't already in your database, the best practice would be to create the organization first.
That way - when you create the contact record, you'll be able to associate the contact with your newly created organization record.
When you create a new organization record, you can choose whether they are a nonprofit or business record.
Select either "Business" or "Nonprofit" from the picklist and click Continue to create a new, blank organizational record.
As we mentioned earlier - there is also an "individual" organizational record type -- but its been hidden from you so you don't accidentally create a second organization of type "Individual"
Note: Be sure to never delete the record for the one organization named Individual.