The behaviour of beam-to-column connections plays an important role in the analysis and design of steel structures. A computer-based method is presented for nonlinear steel frames with semi-rigid connections accounting for shear deformations. The analytical procedure employs transcendental stability functions to model the effect of axial force on the stiffness of members. The member stiffness matrix, and the fixed end forces for various loads were found. The nonlinear analysis method is applied for three planar steel structures. The method is readily implemented on a computer using matrix structural analysis techniques and is applicable for the efficient nonlinear analysis of frameworks.