Contractor to FTE

Currently I am working with a Client as contractor for last 10 months under L2EAD.Client is willing to sponsor my H1B visa and convert me as Full time employee.
1.)Should I be converted as Full-time employee before they register for H1B on March 1 ?
2. Or is it fine If they change me as Full time employee after getting selected in lottery process.?

Can Anyone Please help with Answers.