The first $12,400 is not taxed (standard deduction). The next ~$10,000 is taxed at 10% anything over at 12% (up to $30K). If she makes over $432 on the 1099-NEC, she will have to social security and Medicare tax, on that income in the form of Self employment tax (~14%). This is in addition to income tax. She can deduct mileage in addition to the standard deduction (she will be filing schedule C).
There are no specific IRS rules for internships and apprenticeships. She'll have to ask the employer how taxes will be handled.. For example, will income be imputed for the housing. If the housing is "for the convenience of the employer", it can be tax free. Stipends can be reported on a W-2, or 1099-NEC or can be treated as tax free under an "accountable plan".
Simple answer: using the loop hole with the LLC for one of her 5 college years is recommended.
