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Depends. If you love the outdoors, do a picnic and invite your friends and family. That way he can get to know the family better and be close to them as well as your friends. Picnics are fun 1st birthdays.
keep the guest list very small, and don't let the party go over 1.5 hrs. at this age, that's about all they can handle. it can be a pretty overwhelming experience for them. instead of splurging on a fancy store bought cake, bake some cupcakes. cheap and easy. almost fool proof. slap on some icing, and top with sprinkles.