SharePoint Online - Site Collection Hierarchy

We are using SharePoint Online (O365) and planning our Site Collection Hierarchy. In some of my testing, I can create a Site Collection underneath the root site collection.

For instance:

When I go into the admin portal for SP and bring up the site hierarchy, it does not show this site collection existing as part of the hierarchy. It only shows the sub sites ( Why is this?

The idea is to have a hierarchy similar to our org chart. Should I instead be using sub sites under the 'mycompany' site collection?
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Jamie McAllister MVPSharePoint ConsultantCommented:
You need to use sub sites. Site Collections are actually quite separate entities. They don't share permissions, column definitions or content types with other Site Collections, to name a few (except when published via Content Type Hub).

Though you can create a site collection with a url making it look like it's under another site collection, they're really separate.

The reason to create new site collections are usually to manage content database sizes (as they can be configured to have their own DB), or for permissions of metadata segregation.
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