What you need to be lega and for that matter smart:
A transfer switch will unplug the main power lines from the utilities before it will then engage the power lines from your generator.
So one switch will allow either but -never both- sources of power to be fed into the wires.
If you want your generator to power just your shed, you can put the transfer switch there.
If you want it to power just the hose, you can put the transfer switch there.
If you want the generator to be able to power your whole place, you will need to put the transfer switch by the main meter/ transformer/ area.
I think the others might have real good advice, but we are missing the starting basics - the transfer switch is designed so any dummy at all can't possibly have both the generator and the utility transformer ever connected to each other. Ever.
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