Utilizing given approach each client get his own database. In such case every client`s data stays isolated from others. It simplifies backing up the data, installing new clients but causes higher cost of maintenance.

Subject recursion is well covered in the literature, but, nevertheless, the problem of output “tree” does not mean the client and SQL Server many baffled. So, put the problem: there is a table with the name and record id field indicating the parent identifier. Immediately fill in this table, some sort of test data: