You'll need to have a second email address. You can only have one shop for a single email address - but you can use the same paypal. Etsy has said that they would rather people only had one shop, but it's certainly not un-allowed. But you do have to make sure that both shops and profiles state clearly all of your accounts, including ones that are exclusive for buying.
I have two shops, both under different email addresses, but they both use the same paypal. My paypal is under my most frequently used email address, so I know instantly WHEN I get a sale in either shop without having to log in and out, though obviously I have to relog to find out what I've sold to whom and when.
Just log out of this account, create a new email address and then set up a new account. It's as easy as that. And you can promote both shops together. I usually have a link to my other shop at the bottom of each listing, though not at the moment as my shop is undergoing personal maintanence :P I've also made sure that the coupon code I give out to returning customers is good for BOTH shops, and I make sure that I give out both business cards with my handwritten thank you note with each order.
