Lets consider default ASP.NET MVC application folder structure, so it\'s looks like this:
-App_data
-Content
-Controllers
HomeController.cs
-Models
Accou
I would put the EF-model (aka physical model) always in its own assembly or in a "core" assembly outside of main MVC application. The same applies for your business-logic / domain-logic / domain-services / etc. Separate the non-web stuff from the MVC-Web-Application.
This will help you re-use the core part of your app. For example when you need to expose it as a service, a command-line tool, migration-tool, etc.
Because storing this in its own assembly is so easy and takes you a few minutes I highly recommend doing this for each and every tiny app too.
Well this is debatable, but i'd vote +1 for the Models folder.
The only other candidate would be App_Data, but this is generally for file-based databases (SQL Server CE .MDF, for example) and files you don't want served by IIS.
As the EDMX is an abstraction of the database, it should go into the Models folder.
If the project gets bigger, you should definetely move your EF Model into another project. To future-proof yourself from this, make your Controllers access the EDMX via Repository/Interfaces, so when you move the DAL over to another project, all you'll have to do is add the reference and add in the using statements.
My opinion is that you should create
For a small project, it should be part of the Model. For a larger product, the repository and the associated model could be in a separate assembly.