If you’re a Fractional CMO, consultant, or solopreneur running your own business, the newly signed One Big Beautiful Bill (yes, that’s the official name) isn’t just noise from Washington. It’s real, impactful legislation that can directly benefit your business as a Fractional CMO.

Signed into law on July 4, 2025, this sweeping legislation introduces tax changes designed to favor small, service-based businesses, especially those operating under LLCs or S Corps. That means if you’re a Fractional CMO running a lean, client-focused business and making smart investments in tools, systems, or IP, you’re exactly the type of entrepreneur this bill supports.

Curious how the One Big Beautiful Bill impacts your business?

Join our free live webinar with Uprise on Wednesday, July 23 at 10:00 AM PT to learn how Fractional CMOs, Fractionals, entrepreneurs, solopreneurs and small businesses can unlock new tax benefits before year-end.

👉 Save your seat here + All attendees will receive a free consultation from Uprise and a Hey CMO exclusive 20% discount on Uprise’s services.

Here’s what’s changed and what to do next to actually take advantage of it as a Fractional CMO.

1. 100% Bonus Depreciation Is Back (Retroactive to Jan 1, 2025)

As a Fractional CMO, you can now fully expense qualifying business purchases like laptops, cameras, software, and other tools in the same year you buy them. This is retroactive to January 1, 2025.

If you’ve made investments to improve your Fractional CMO business this year, this could translate into thousands in tax savings.

What to do:

Review and track all 2025 business-related tech, software, and equipment purchases. Confirm they’re properly categorized in your bookkeeping and work with your CPA to apply the bonus depreciation on your next return.

2. You Can Fully Deduct R&D Expenses Again

Previously, R&D expenses had to be amortized over a five-year period. Now, those costs can be fully deducted in the same year.

And yes, R&D applies to Fractional CMOs too. If you’re building IP, testing new marketing frameworks, developing lead-gen systems, or experimenting with delivery models for your clients, your work likely qualifies under Research & Experimentation (R&E).

What to do:

Start documenting any custom frameworks, process development, or system building you’ve done for your Fractional CMO practice or for clients. Include time logs, tools used, and project goals to strengthen your deduction claim.

3. QBI Deduction Increases to 23% in 2026

Starting in tax year 2026, the Qualified Business Income (QBI) deduction for pass-through businesses will increase from 20% to 23%. That means a greater portion of your income as a Fractional CMO can be deducted before federal tax is applied.

If you’re an S Corp, this is great news. If you’re still operating as a sole proprietor and earning $60K or more annually as a Fractional CMO, it’s time to run the numbers.

What to do:

Meet with a tax advisor to determine if electing S Corp status makes sense for your Fractional CMO business. Done correctly, this change can reduce both your self-employment tax and taxable income heading into 2026.

4. Expanded Deductions for Meals, Travel, and Tips

The bill temporarily increases deductions for business meals, travel, and overtime-related perks. That’s great news if you’re a Fractional CMO often on the road, meeting with clients, or managing a remote team.

What to do:

Track all eligible expenses, note business purposes and store receipts. If you’re not already using a bookkeeping tool for your Fractional CMO business, this is your reminder to start.

Does This Actually Apply to You?

If you’re earning a steady income through a pass-through entity like an LLC or S Corp as a Fractional CMO and you’re actively investing in your business, then yes, this bill absolutely applies to you.

But none of these benefits are automatic.

To qualify, your business as a Fractional CMO needs to be:
• Structured correctly (LLC or S Corp with the proper tax election filed)
• Tracking and categorizing expenses accurately (especially for tools, tech, meals, and R&D)
• Maintaining clean documentation (receipts, logs, project descriptions)

Depending on how your business is set up, there may be additional provisions in the bill that apply to you, such as hiring incentives, retirement contribution changes, or industry-specific tax relief. The only way to know for sure is to review the full picture with a qualified financial pro.

If you’re building repeatable systems, testing new delivery models, or making strategic investments as a Fractional CMO, but not labeling and documenting those efforts, you’re likely leaving money on the table.

This legislation is a rare moment where the tax code favors entrepreneurs like Fractional CMOs. But only if you treat your business like a business.

Join Our Live Webinar with Uprise

Your 2025 Business Checklist

Take action now so you’re not scrambling at year-end:

▪ Confirm your business structure (LLC? S Corp? Sole prop?) for your Fractional CMO work
▪ Elect S Corp status if you’re earning $60K+ per year as a Fractional CMO
▪ Track all equipment, software, and tool purchases for bonus depreciation
▪ Document IP or system development for R&D deductions in your Fractional CMO operations
▪ Log client meals, travel, and other deductible business expenses
▪ Talk to a tax advisor who understands service-based businesses like yours
▪ Register for the Uprise webinar and bring your questions

Final Thought

Tax policy usually overlooks small, service-driven businesses. Not this time.

The One Big Beautiful Bill gives you powerful ways to reduce your tax liability and reinvest in growth, but only if you’re set up to capture those benefits.

Need help putting the right systems in place?
Schedule a free strategy session. You don’t have to do it alone, and you shouldn’t.