Hi John - Welcome to the Atlassian Community!
That's a very good question, and one that we debate each time we need to do it. We consider Projects in Jira to really be Teams. So, for us to create a new Project in Jira, the first question we ask is whether this is a new set of people working together? Or is is just a sub-set of existing people on and existing project.
Using an existing project and just creating a new Component or something to that affect to be able to filter out the different work seems to go fine. There's not a lot of changes that need to happen to boards, etc.
If you create a new Team/Project, then there are filters to change, new boards to create, new project to create, etc. Or you can use an existing board and simply change the filter if you want to see everything on one board - we tend to do that a lot. For example, Team (Project) ABC existed before, but now we have created Team (Project) XYZ. So we have a Master Board that uses a filter with Project in (ABC, XYZ). Then use Quick Filters to get different looks. Then we might even have two totally separate boards for just Project ABC and one for Project XYX.
That's a little more maintenance, but it helps the teams to feel a little more independent and gives them a warm fuzzy. :-)
That's not much, but I hope it helps a little!
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