The second level of being a poser/loser. Someone who is "whipped" or someone who thinks he's cooler than he really is. A toolshed usually dresses outside of the mainstream just to make others think he is cool. He is always a jackass. A female tool shed, though rare, shares these same characteristics, and usually operates by being a total bitch and thinking she is hotter than she really is. A tool shed is is a bigger loser than a tool, but not quite a hardware store.
I'd be complimenting Ryan Seacrest by calling him a tool shed: he's a hardware store (aka Home Depot).
That toolshed talks on the phone to his girlfriend for 6 hrs a night.
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