The paper aims to provide details on designing a LCL filter for a LV modular multilevel converter (MMC) with lower number of cells per arm. It is used to interface the main LV distributed grid with different local ac and dc grids in a hybrid ac/dc microgrid. Exploring the filtering capability of the equivalent arm inductance of the MMC seen from the ac grid side, a bi-objective optimization based on the Genetic Algorithm is developed which specifically finds the inductive components parameters that assure lower losses and volume under different design constraints. Results show that smaller LCL components for the MMC can be used to satisfy stringent requirement of standards such as IEEE-519. This has the benefit of reducing the overall footprint of the converter.