For some time i'm debating if i should leave columns which i don't know if data will be passed in and set the value to empty string ('') or just allow null.
i would like to hear what is the recommended practice here.
if it makes a difference, i'm using c# as the consuming application.
Don't use empty string if there is no value. If you need to know if a value is unknown, have a flag for it. But 9 times out of 10, if the information is not provided, it's unknown, and that's fine.
NULL means unknown value. An empty string means a known value - a string with length zero. These are totally different things.
I'm afraid that...
There is no single answer to this question.
As indicated in other responses, at the level of SQL, NULL and empty string have very different semantics, the former indicating that the value is unknown, the latter indicating that the value is this "invisible thing" (in displays and report), but none the less it a "known value". A example commonly given in this context is that of the middle name. A null value in the "middle_name" column would indicate that we do not know whether the underlying person has a middle name or not, and if so what this name is, an empty string would indicate that we "know" that this person does not have a middle name.
This said, two other kinds of factors may help you choose between these options, for a given column.
Data semantics
For example it is important to know if the empty-string is a valid value for the underlying data. If that is the case, we may loose information if we also use empty string for "unknown info". Another consideration is whether some alternate value may be used in the case when we do not have info for the column; Maybe 'n/a' or 'unspecified' or 'tbd' are better values.
SQL behavior and utilities
Considering SQL behavior, the choice of using or not using NULL, may be driven by space consideration, by the desire to create a filtered index, or also by the convenience of the COALESCE() function (which can be emulated with CASE statements, but in a more verbose fashion). Another consideration is whether any query may attempt to query multiple columns to append them (as in SELECT name + ', ' + middle_name AS LongName etc.).
Beyond the validity of the choice of NULL vs. empty string, in given situation, a general consideration it to try and be as consistent as possible, i.e. to try and stick to ONE particular way, and to only/purposely/explicitly depart from this way for good reasons and in few cases.
empty when I want a valid default value that may or may not be changed, for example, a user's middle name.
NULL when it is an error if the ensuing code does not set the value explicitly.
However, By initializing strings with the Empty value instead of null, you can reduce the chances of a NullReferenceException occurring.
Theory aside, I tend to view:
In this case, I'd probably use NULL.
One important thing is to be consistent: mixing NULLs and empty strings will end in tears.
On a practical implementation level, empty string takes 2 bytes in SQL Server where as NULLs are bitmapped. In some conditions and for wide/larger tables it makes a different in performance because it's more data to shift around.