Sherman was born in Marlboro, Massachusetts, a son of Michah and Susanna Dennison Frost Sherman. When his parents died, leaving him orphaned at the age of 16, Sherman moved to Boston, where he found employment in a store. He soon moved to New York City, and in 1831, settled in Newport, Kentucky, where he engaged in the manufacture of cotton bagging. On April 27, 1835, Sherman married Catharine Isabel Cox (1815 — 1865) of Frankfort, Kentucky. They had 8 children. Sherman's business prospered, and he became well known and influential in the community.