-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 UDDKeGIfFQvUexJB1TnNEVIRoyjNXXNeOUyZTcgHktnLLf/ygB7yjilyM4P7DfcG
 dfKwXfMwYKt8NaZnV4iiTw==

<SEC-DOCUMENT>0001209191-09-030285.txt : 20090603
<SEC-HEADER>0001209191-09-030285.hdr.sgml : 20090603
<ACCEPTANCE-DATETIME>20090603101131
ACCESSION NUMBER:		0001209191-09-030285
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090529
FILED AS OF DATE:		20090603
DATE AS OF CHANGE:		20090603

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMART ONLINE INC
		CENTRAL INDEX KEY:			0001113513
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				954439334
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		4505 EMPEROR BLVD.
		STREET 2:		SUITE 320
		CITY:			DURHAM
		STATE:			NC
		ZIP:			27703
		BUSINESS PHONE:		919-765-5000

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 12794
		CITY:			RESEARCH TRIANGLE PARK
		STATE:			NC
		ZIP:			27709

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Atlas Capital SA
		CENTRAL INDEX KEY:			0001315654

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32634
		FILM NUMBER:		09870128

	BUSINESS ADDRESS:	
		STREET 1:		118 RUE DU RHONE
		CITY:			GENEVA
		STATE:			V8
		ZIP:			CH-1204
		BUSINESS PHONE:		41 22 849 66 55

	MAIL ADDRESS:	
		STREET 1:		118 RUE DU RHONE
		CITY:			GENEVA
		STATE:			V8
		ZIP:			CH-1204
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>c86430_4x0.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-05-29</periodOfReport>

    <issuer>
        <issuerCik>0001113513</issuerCik>
        <issuerName>SMART ONLINE INC</issuerName>
        <issuerTradingSymbol>SOLN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001315654</rptOwnerCik>
            <rptOwnerName>Atlas Capital SA</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>118 RUE DU RHONE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>GENEVA V8 SWITZERLAND</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode>CH-1204</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2009-05-29</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>70433</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>1.75</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>7161344</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <ownerSignature>
        <signatureName>/s/ Avy Lugassy</signatureName>
        <signatureDate>2009-05-28</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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