Last year, one of my friends had the exactly same situation as you have now. He started applying the H1b after he got that job. but the INS rejected his application because his out of status( even he couldn't apply the H4 under that circumstance)the way he solved this problem was he went back to China to visa as H1b. his lawyer told him to do so and promised that there was no any problem in this kind of case. of course, he successed. so what you need to do is to negotiate with your company to sponsor your H1b and go back to China as soon as possible. by the way, my friend bought round tickets. he left on Sunday and went back on Tuesday of next week hehe:)
better to ask a lawyer before you make any decision in case you have forgotten other problems you didn't tell here.
Good luck
better to ask a lawyer before you make any decision in case you have forgotten other problems you didn't tell here.
Good luck