The focus of this work is to present a nonlocal nolinear finite element formulation for the analysis of beams considering surface effects. Governing equations for Timoshenko beams are derived using Hamilton’s principle which includes material length scale effects based on Eringen’s nonlocal differential model. Green’s strain tensor together with Von Karman assumptions are employed to model the geometrical nonlinearity. The influence of nonlocal parameter and surface potentials on the bending behavior of the beam are studied. Keywords: Nonlocal effects, Surface effects, Von-Karman strains, Geometric nonlinearity.