Your daughter doesn’t necessarily need to be a “business owner,” in the way you’re thinking of it, to be required to file a Schedule C.
She just needs to have net self-employment income of $400 or more.
She received Form 1099-NEC because she earned non-employee compensation while working for this person. That’s considered self-employment income, and would need to be reported on a Schedule C.
If your daughter is your dependent, and her self-employment net earnings were less than $400, she may not need to file a return. Please see the TurboTax Help article Do I need to file a federal return this year? to see if she needs to file a return.
And see the TurboTax articles How to File Taxes with IRS Form 1099-NEC - TurboTax Tax Tips & Videos and What Is a Schedule C IRS form? - TurboTax Tax Tips & Videos for more information on self-employment income.
