I have always had the site leveled before building anything. The best footing I have is compacted blue clay. Anything but top soil will compact pretty well for a base. I usually have dirt/fill on grade and flat but 6-12 inches lower than I want the final grade. The depth depends on what I am planning on the flooring being made of. In your case I would level it to six inches below final grade. The use larger base stone (1- 1 1/2inch) for 3-4 inches and finish it off with 3/4 crusher run with the fines.
Make sure and have the level site at least 4-6 foot larger than your building. That way you can make sure the final outside grade falls away from the building/shed.
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Today's Featured Article - Third Brush Generators - by Chris Pratt. While I love straightening sheet metal, cleaning, and painting old tractors, I use every excuse to avoid working on the on the electrics. I find the whole process sheer mystery. I have picked up and attempted to read every auto and farm electrics book with no improvement in the situation. They all seem to start with a chapter entitled "Theory of Electricity". After a few paragraphs I usually close the book and go back to banging out dents. A good friend and I were recently discussing our tractor electrical systems when he stated "I figure it all comes back to applying Ohms Law". At this point
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