Friends with benefits or a couple?

There is this guy I met and I really like him. When we met, we kinda clicked as friends then like we turned out to be really good friends. And now we're talking bout "doing it" and we both like each other. I don't know if we're friends with benefits or we're dating? We text each other almost all the time. We talk for hours, even when we have nothing to say. We don't get to hang out with each other as much as we want to. He is just a year older than me. And my friends say that we are in denial, about our feelings for each other. When ever he is around, i can't stop smiling. Like if its a cloudy day out, when he is around i don't see the clouds, i see a bright sun, shinning down. Sometimes I wish he'd reach out and grab my hand. Sometimes he does. I like him a whole lot and I'm not sure what to do. He is everywhere; my dreams, my thoughts, my day-dreams,etc. I can't stop thinking about him. I want to know how he feels about me, but I'm to nervous to ask him.