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If you provide your clients access to servers and databases, there isn't really a need to for setting up an org for each client but create an OU or just an account per client/project like you said. This also works even if you are giving your clients access to their own AWS account as long as they are not looking for to build thing across multiple accounts and utilise org. features. Simple website hosting doesn't sound like would be interested in those, so keep it simple and follow the plan as you described it.
PS. If this is your core business, you might be interested in AWS becoming an AWS partner. https://aws.amazon.com/partners/
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If you re-read my question, the proposal was not that each client get set up as a full separate organization, but rather each client become an OU under OUR single company organization. Again, for consolidated billing at the very least, but also for the other benefits that AWS Orgs provides.