Short answer: Do not use null in web services.
In general, I advise you to stick to empty lines above zero, unless the value is non-zero. I would prefer to use null only as "undefined". For example, when entering a user, if the user enters the field and does not enter anything, this will be an empty string. But if the user simply skips this field, it may be null.
Until I define a value for null, I prefer to return an empty string and use String.IsNUllOrEmpty on the processing side, because instead of any future knowledge, I should assume that the empty and empty are the same.
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