Can you live in a shed?

Physically, sure. Why the hell not. Legal, probably not in most areas. I bought some land in Michigan and I wanted to put a small trailer up there so I could go camping comfy style. Unfortunately even out in the country there were all kinds of regulations and code on what kind of home I could have. I even wanted then just to put a garage up there to store my classic cars etc but they wouldn't let me do that unless there was a house. If you really want to know what kind of building you can put talk to the township or village.