Disclaimer: I am not a legal expert, this is my understanding on the laws. If your toys are intended for children over 3 and are made with the yarn, safety eyes, and poly fil, you would have to do the following to be legal:
1. Register on Small Batch Manufacturer's Registry, which would exempt you from getting your toys third-party tested for lead and other toxins (everything but the safety eyes is already exempt, but if you have a GCC for the eyes, you are good). If the toys are intended, labeled, and marketed for children over 3, you do not need to do third-party small-part testing (use and abuse). Here is a doc. that explains the age determinations for toys:
http://www.cpsc.gov/BUSINFO/adg.pdf Even though you would be exempt from third-party testing, you would still need to personally make sure your toys follow all the requirements for toys.
2. Include tracking labels on all your toys. There are special requirements for the info on the labels. Lots of info on this on this forum.
I think that is it. It is actually easier if your toys are made of fabric and are not intended for babies. Again, I may be misunderstanding something or leaving something out. Please correct me if I'm wrong because I want to be legal, too! :)