Sub-accounts are often used to manage permissions and organizational hierarchy within an institution. Many institutions set up sub-account organization structures that mirror their SIS or registration systems. For example, sub-accounts can be created for individual colleges within a university, or for schools within a district. Sub-accounts can also be created within sub-accounts, such as when a college subdivides into departments that subdivide into programs, or a school that subdivides into grade levels that subdivide into specific subjects.

Institutions can create a hierarchical structure to best fit the needs of their institution. Users with an admin role can be assigned to specific sub-accounts with specific account-level permissions.

Account-level permissions are initially set by the root account admin and trickle down through the hierarchy but not up. Admins for sub-accounts can modify account-level permissions for their sub-account. Admins in one account have administrative permissions within that account as well as in any sub-accounts of that account. Additionally, an admin can move a course within its sub-account, but they cannot move a course between sub-accounts unless they are also the admin of the parent account of each sub-account.