You are free to create and manage your folder structure. Since you want to add tags or captions to your files, I imagine you won't be happy with the editor alone (without the organizer).
In the editor, you can use the menu File >> File Info... to add metadata in the general and IPTC panel for each individual file. But the editor has no way to search from given keywords or from exif data written in the files by your camera.
If you use the organizer, you can import files from your camera/card reader or from your already present files in your computer.
If you import from files already on your computer, your folder struture is not changed.
If you import from camera or card reader, the first stage is to download the files and store them where you want. You can define the destination for each import batch or better define in which folder you want to store them. The advanced options of the downloader even let you create a date based subfolder structure if you want.
In both cases, the organizer reads and manages the exif info written in the files from your camera.
Its main use is to assign additional information like keywords (in your own hierarchy), captions, notes or ratings.
You can group your files in version sets, stacks or albums without changing anything in the folder structure.
It can also manage your folders in a similar way to the Explorer or Finder.
My advice is to try to read the help files for the organizer and ask when you need more explanations.
Elements Organizer Help | Elements Organizer User Guide
It's absolutely necessary to understand how your information is stored in catalogs.
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