The present study is to investigate the ultimate behavior and limit state design of 2-I) R/C structures, with the changing of crack direction, and the yielding of the reinforcing steel bars, and Is to introduce an algorithm for the limit state design and analysis of 2-D R/C structures, directly from the finite element model. For the design of reinforcement in concrete the limit state design equation is incorporated into finite element algorithm to be based on the pointwise elemental ultimate behavior. It is also introduced a simplified nonlinear analysis algorithm for stress-strain relationship of R/C plane stress problem considering the cracking and its rotation in concrete and the yielding of the reinforcing steel bar. The algorithm is incorporated into the nonlinear finite element analysis. The analysis model is compared with the experimental model of R/C shear wall. In a simple design example for a shear wall, the required reinforcement ratios in each finite element is obtained from the limit state design equations.