I'm no expert, but I'd suggest you definitely transplant to bigger pots, and one per. Use decent soil, too, not just sandy dirt from your yard (unless you're a composting wiz, in which case I doubt you'd have posted in the newbie section). Don't cover the bottom leaves, though, just up to them, so the small leaves are just above the surface (but not touching the soil). LSTing will be much later, once there is actual growth to train. In the mean time, read, read, read! The stickied posts at the top of this section, and the outdoor growing section are likely to be your best bets for now.
Good luck and happy growing!