What license terms do you want? Here are some popular goals, and possible licenses to consider:
"Please don't sue me." -> MIT license or 3-clause BSD.
"Share and share alike (application)." -> GPL
"Share and share alike (library)." -> LGPL
"Share and share alike (hosted server application)." -> AGPL
To play nicely with a larger community (Ruby, Perl, Mozilla, etc.), use the most common license in that community.
Of course, read the licenses and get proper legal advice before deciding. I am not a lawyer. Oh, and don't let your lawyers invent their own license—nobody wants to figure out a non-standard license, so you'll get fewer contributors, and it's a lot more work for you.