A new method is described for constructing initial data for a binary neutron-star system in quasiequilibrium circular orbit. Two formulations for nonconformally flat data, waveless and near-zone helically symmetric, are introduced; in each formulation, the Einstein-Euler system, written in 3+1 form on an asymptotically flat spacelike hypersurface, is exactly solved for all metric components, including the spatially nonconformally flat potentials, and for irrotational flow. A numerical method applicable to both formulations is explained with an emphasis on the imposition of a spatial gauge condition. Results are shown for solution sequences of irrotational binary neutron-stars with matter approximated by parametrized equations of state that use a few segments of polytropic equations of state. The binding energy and total angular momentum of solution sequences computed within the conformally flat---Isenberg-Wilson-Mathews---formulation are closer to those of the third post-Newtonian (3PN) two point particles up to the closest orbits, for the more compact stars, whereas sequences resulting from the waveless/near-zone helically symmetric formulations deviate from the 3PN curve even more for the sequences with larger compactness. We think it likely that this correction reflects an overestimation in the Isenberg-Wilson-Mathews formulation as well as in the 3PN formula, by ˜1 cycle in the gravitational-wave phase during the last several orbits. The work suggests that imposing spatial conformal flatness results in an underestimate of the quadrupole deformation of the components of binary neutron-star systems in the last few orbits prior to merger.