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Friends With Benefits?

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I dated a guy a bit over a year ago. We really really liked each other, but it ended badly.
Over the last three months or so we've become really close. We tell each other pretty much everything.
Everyone around us thinks that we're perfect for each other... And i think i love him. I can talk to him for hours and not run out of things to say. Last night he told me that he really liked me and wanted to try to make it work. But i don't know what to do. I love him... But im afraid its gonna be awkward if we start dating. And what if we broke up and not only would i lose him as a boyfriend, but i'd also lose him as a very close friend.
Do u think it would work out better if we didn't really label it as dating and were kinda a closer version of friends with benefits??