Should a social network be S-Corp or LLC

This is less a matter of whether your business is a social network, and more about how you plan to finance and operate the business. If you are going to be seeking venture capital funding, you will want a C-corporation, not an LLC or S-corp. If you are not going to seek VC funding, then either an LLC or an S-corp may suit your needs, as both will provide you with pass-thru taxation. The owners of an LLC are called "members." The owners of a corporation are called "shareholders." Before you proceed, you should consult with a business attorney, to help you choose the best approach. An LLC isn't necessarily easier than a corporation to run; that's a myth. The truth of the matter is, LLC's are complex partnership/corporation hybrids, with a lot of thorny tax issues. Trying to get an LLC to operate like a corporation is kind of like trying to force a square peg into a round hole. Legal advice now will save you a lot of money and headaches later.

As you can tell from the range of answers, neither an S Corp nor an LLC is the wrong answer. On the most basic level, LLCs are much more flexible than corporations in terms of issuing profit interests or different classes of membership with different profit or voting rights. In contrast, a corporation cannot be an S Corp if it has more than one class of shares or any entities as shareholders. If you intend to take in investors an LLC is much more flexible - but if your company ever goes public, it will have to be a C Corp. Bottom line: seek out a good entrepreneurial attorney.