Outlook 2010, where to create folders and subfolders

It depends on how easy it is to put the emails into the specific folders.

Basically, the harder a system is to work, the less likely the user is going to maintain it.

If you are going to move it from a Personal Folder to a Public Folder, then definitely do number 1.

This would be mailbox folder to mailbox folder.

Since you are on exchange 2010, why not look at archiving?

Here you can say anything older than 720 days goes to archive, this an easy way for them to know where to go and look. If this is an option I can provide a little further detail.

As well Using the same mailbox you can create folders under the inbox, this is great if eventually you implement an archive policy they will be picked up in the scan.

If you create folders outside of the inbox you can manually run the archive on these.

Both options still are tied to a single mailbox.

I understand archiving and entertained.  Situation is that some users (one being president of company) retain email going back to 2002.  Currently they create subfolders within Inbox.  So an Inbox subfolder might be CompanyABC.  They would not accept having to anywhere but subfolder CompanyABC to review emails.

I feel I can convince them to create other mailbox folders outside of Inbox, but goes back to my original question

Would it be better to:
1. Account/New Folder/Subfolders (to move items from Inbox, by year or whatever) or
2. Account/New folder (one new folder for each year or whatever).

If user goes with option 1 does this create the same problem as storing all email in Inbox?

Accepted this solution because the answer given was that either option would work and indexing is done on Inbox.

Thanks to those who provided input.