B1 to h1 change of status vs consular processing

[ap154]

I studied in US on F1 visa. Then a company A in US hired me and did my H1. I worked on H1 for about a year. I went to India on vacation in August 2009, but when I went to get my visa stamped, it got refused. Then I joined an Indian company B there, which sent me to US on B1 visa on Aug 22, 2010. Right now I am in US on B1 visa while my wife is in India. My B1 expires on Feb, 2011. I got a job offer from company C on Sept 24, 2010. My visa needs to be filed on 27th or ASAP on premium processing.

My question is: When they file my H1, should they apply for change of Status or consular processing? ("consular processing" meaning going to India and getting the visa stamped from there, then come back to US and start working)
I am worried that if I change my status from B1 to H1 while I am in US, they might not stamp my wife's visa thinking I misused B1 visa. If that happens, I will have to leave the job and go to India.
Thanks,
Aashu

[sk4ih]

Consular processing

[shervin143]

A COS from B1/B2 to H1B is never advisable. You will end up answering a lot of questions when you go for stamping the next time. Also, the chances of a successful COS is less. As mentioned below, it is advisable to apply the petition as a consular process and when it gets approved, get it stamped and return back to work for the H1B employer.

[ap154]

Thank you guys for you answers. I will talk with the company Lawyer tomorrow and discuss this issue. I feel I am better prepared for the duscussion now.