There's a QSUB (100% of stock of QSUB must be owned by original S_Corp) which is treated as a division of the original so only one 1120-s return (but separate accounts on the books) and the filing of form 8669. Or it could be treated as a separate S-Corp which requires filing form 2553 and 8332 if it is not a corporation.
with a QSUB separate accounts are kept on the books of the original S-corp. as a separate S-Corp the money would be record as a distribution. separate books for the new corp.
discussion with a lawyer would be appropriate because of state laws and the fact that in certain situations the assets of both would be in jeopardy in a QSUB/S-corp but maybe not if separate corps.
