Distributed massive multiple-input multiple-output (MIMO) combines the array gain of coherent MIMO processing with the proximity gains of distributed antenna setups. In this paper, we analyze how transceiver hardware impairments affect the downlink with maximum ratio transmission. We derive closed-form spectral efficiencies expressions and study their asymptotic behavior as the number of the antennas increases. We prove a scaling law on the hardware quality, which reveals that massive MIMO is resilient to additive distortions, while multiplicative phase noise is a limiting factor. It is also better to have separate oscillators at each antenna than one per BS.