Contacts are records that keep information about people or organizations. At this time, the only distinction made for a “type” of Contact is whether it is a [Person] or a [Company].
A [Person] type will assume the Contact has such attributes as a “first name”, “last name”, “date of birth”, etc.
An [Company] type will assume the Contact is an entity with a “mailing address”, “phone number”, “tax ID”, etc.
The Contact Type can be set when you add a Contact to the system.