Direct analysis method (DAM) considers the major factors significantly affecting the structural behaviors, such as second-order effects, global frame imperfection and member imperfection, material yielding and joint finite stiffness. This method integrates the design requirements in the process of analysis and as a result, the effective length assumption is no longer needed. DAM is highly recommended in many modern design codes including the latest Chinese code GB50017-2017. DAM is based on the nonlinear finite element analysis and therefore it can be extended to performance-based seismic design. To meet the codified requirements of DAM, a flexibility-based element considering the member initial bowing, residual stress and material yielding is proposed in this paper for seismic design. This new element shows high accuracy so that one element per member is sufficient for practical use. A framework based on DAM is also introduced for seismic design and discusses the issues in the application of DAM.