L1B to H1B : H1b approved but denied on COS as we crossed border while h1b processing

Dear all, I am on L1b from company X and got H1b lottery from company Y. unfortunately I crossed border while h1b is in progress, so USCIS approved H1b but asked me to go through consular processing (cross border and come again) for change of status. currently still working on L1b.

  1. Is it possible that my company X can transfer h1b from company Y without crossing border?
  2. Company X is in the middle of processing I140 for me, so how to transfer h1b to company X and continue my job to get my I140?
  3. Should i have to work minimum months in company Y before transferring my visa to company X?

Technically the change of employer aka transfer petition can only be applied if the beneficiary is already in that status, in your case, H1B.

Because you are still in L1 status the employer X will need to file a new cap-exempt H1B petition with change of status from L1 to H1B.

The issue though is that because you haven’t worked on H1B yet or have a H1B visa stamp, your approved H1B is not considered activated. In such scenario there is 50% chance that the USCIS will approved the H1B petition with change of status from employer X.

I would say try your luck and see if you are lucky. There is nothing to lose as your H1B approval wont be impacted.

Your other two questions are kind of answered above.