The paper outlines a procedure for selecting capacitance and inductance for the modular multilevel converter. In the direct modulation method of the modular multilevel converter, sinusoidal modulating signals cause circulating currents to flow through the converter arms. These currents depend heavily on the component parameters of the converter, including the capacitance of the submodule DC-link capacitors and the inductance of the converter arms. Both components together form a series resonance circuit in each converter arm. It's crucial to avoid resonance in the converter arm, so it's important to carefully select component parameters while considering all potential resonances. This component selection process should be carried out early in the converter design stage.