How do I decide whether to keep cash in the business or distribute it for tax planning?

For a business with multiple owners this can be somewhat complicated. There should be a clearly defined set of expectations in this case. When you are the only owner, many of the taxes will have already flowed through to you. This can mean you are able to take out cash without needing to pay more taxes on it.
Your entity type will determine the best approach for these decisions. Generally, we like to take cash out if it is being invested because of liability that the business might have. It can also be wise to avoid holding all of your cash personally if you are worried about a personal lawsuit or debt.
These decisions involve a ton of variables so they should be tailored to your specific situation. It would be a mistake to assume something online will 100% fit your situation without talking to your advisors.