Can my dau open a sole proprietor business on her personal taxes & still be a dependent on her parents?

"My daughter who is a 20y, FT college student & our dependent, just told me she wants to be able to claim her expenses for her side jobs of photography shoots & videography. That's what she's attending school for but these paid jobs are outside of her required college assignments. She also has a couple W-2s for income for 2016. Can she open a sole proprietor business on her personal taxes to claim her expenses and still be a dependent on ours? Or would we add her income to ours along with her sole proprietor business & associated claimed expenses?"