Can another company apply for H1B for you if you’re still employed at a current employer (and if so, do you need to notify the current employer that you’re in the process if you are on L1 visa?).

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Yes new company can apply for h1B, and no, current company does nit need to know.

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Firstly, you are not technically allowed to change roles or employers while on an L1

Lets say you do find another job, there is technically no "change of status". The new employer has to apply for a brand new H1b that is subject to the annual cap - which means they need to apply when the window opens in March for a position starting in October. This is a lottery. Therefore the new employer has to a) agree to wait this period and b) agree to pay for these costs (you can't) knowing it's a lottery. The other risk for you is that the L1 educational requirements are very loose compared to H1b, so if you have education from abroad, then you will be lower on the lottery list

Assuming an employer is nice enough to assume all the above risks, you have to ensure no gaps between the last day of employment on L1 and your first day of employment on H1. If you have any gap, you will be out of status which will affect stamping, gc application in the future

Lastly, H1b has a 6 year time limit. Any time spent working in the US counts. So your L1 years count here. If you are in year 4 or later, the new employer has to immediately file for GC or you can't extend your H1b beyond 6 yrs.

So can another employer apply for your H1b while. You are on L1? Yes.
But it's highly risky for you and the petitioner, so this happens very rarely.

YMMV

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Ditto

Ooh interested

Heading into my fourth year on an L1 and didn’t know this was a way out. Harder to get a GC if I switch though?

Company politics. They want to max you out on L1 so you can’t leave.

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