Let $R$ be a commutative ring with identity, and $S$ a multiplicative subset of $R$ not containing $0$. Which step in my reasoning is wrong?
- Every element of $S$ is a unit in $S^{-1}R$.
- Every element of $S$ that's a zero divisor in $R$ is a zero divisor in $S^{-1}R$.
- But zero divisors can't be units. Therefore it's not possible to localize $R$ at $S$.