There are no federal or state laws governing how often an LLC can make distributions. Many LLCs choose to define their own ground rules by including language in their operating agreement that defines when and how members can take distributions. Some companies make regular distributions on a quarterly or annual basis, while others do so on a more ad-hoc schedule. In determining the timing and size of distributions, LLC members typically balance their own need for compensation with other business needs, such as growing earnings, covering operating expenses, and retaining cash reserves.