Sub-Items vs Table best practice

We have the option to hold relationships as

  1. Linked Records in a separate table

  2. Sub-items as a field on the main table

What I want to know is best-practice in a specific situation

I know that sub-item fields cannot hold the special "status" column, so if my sub-items that I want to relate are actually tasks, etc I should used a new table or the "checklist" type column

But say for example I have a table of CLIENTS and want to hold a one-to-many relationship to PEOPLE

Should I hold those PEOPLE as a linked relation (separate table) or as a sub-item field?

Also, if I DO hold it as a sub-item field and later want to turn those sub-items into a full table, is that an option?

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