Suppose $M$ is a smooth manifold. Up until now (which I learned from Lee's book Introduction to Smooth Manifolds) I have taken a smooth structure on $M$ to be a maximal smooth atlas. That is, a collection of charts $\{(U_\alpha, \phi_\alpha)\}$ such that the transition maps $\phi_\alpha \circ \phi_\beta^{-1}$ is smooth for all $\alpha$ and $\beta$, and also such that this collection of charts is contained in no other collection.
However, further along in the book he mentions smooth structures with respect to certain functions. For example, in the section regarding immersed submanifolds, Lee says
An immersed submanifold $M$ is a subset $S \subset M$ endowed with a topology with respect to which it is a topological manifold, and a smooth structure with respect to which the inclusion map $S \hookrightarrow M$ is a smooth immersion.
I am having trouble understanding what is meant by the last half of the above definition. How do we have a smooth structure with respect to a function? If we denote the inclusion map by $i$, does this amount to requiring $\phi \circ i \circ \psi^{-1}$ be smooth where $\phi$ belongs to some chart in $M$ and $\psi$ belongs to some chart in $S$?