Backyard building is a term used to describe the structures that are built in the backyard of a home. The two most common backyard buildings are sheds and toolsheds. A SHED is a small, single-story structure typically used for storage or as a workshop. A toolshed is a larger structure, usually with multiple stories, used to store tools and other equipment. Both of these structures are commonly found in backyards and can be used to enhance the outdoor living space.