@Bsch4477 thank you for the correction/ clarification.
However, at that point the LLC could be a better outcome - depends on the dependent's income and how much QEE there is (net of scholarships).
LLC is worth up to a $2,000 non-refundable tax credit ($10,000 of QEE times 20%).
The non-refundable portion of AOTC is only worth a $1,500 tax credit (the first $2,000 of QEE, 60% of which is non-refundable = $1200 and the remaining $2,000 of QEE, 60% of which is non-refundable times 25% or $300).
it's all a moot point if the dependent's income doesn't exceed $13,850 (2023).
